Before you read further, let me strip you of a misconception. Do you know that currency is a system of money, a worth of money, a basic unit of exchange that is equivalent to purported or proposed commodity while money is a substance that is generally accepted as a means of exchange? It means, without a currency system, money cannot be recognized as money because it would have no value.
Having established the foregoing, it is important to mention that the ranking of the currencies is based on their strengths against the US dollar. The United States dollar is considered one of the strongest currencies in the world and it’s, therefore, an appropriate yardstick for measuring the strength of some African currencies.
A state’s currency devalues because of the economic downturn inside a country. This is due to economic downturns such as war actions, GDP decreasing, falling prices of commodities. A consequence of devaluation is a rise in a country’s rate inflation rate.
If you intend travelling to any of these destinations or you are seeking a foreign exchange investment opportunity, it is important to become acquainted with the strength of the currency of the preferred destination. And in this article, we have simplified your research. Read on to know about the ten weakest currencies in Africa.
1. Sao Tomean Dobra (STD)
Sao Tome and Principe is noted to be Africa’s second-smallest country. Its currency, the Sao Tome and Principe Dobra ( with currency code of STD) is the weakest in Africa based on the aforementioned yardstick and its purchasing power. One US dollar currently exchanges for 21,425.54 STD.
2. Sierra Leone Leone (SLL)
The people of Sierra Leone spend the second weakest currency in the whole of Africa.
One US dollar exchange for 9,700.00 SLL. 1 Sierra Leonean Leone equals 0.038 Nigerian Naira.
3. Guinean Franc (GNF)
With 9,539.26 Guinean Franc to $1, the Guinean Franc is the third weakest African currency.
4. Ugandan Shilling (UX)
The Ugandan Shilling (UX) is the currency used by people in Uganda. It currently exchanges at 3,823.59 Ugandan Shilling to $1. hence, it is the fourth on this list.
5. Malagasy Ariary (MGA)
The people of Madagascar use Malagasy Ariary (MGA) as their means of exchange. The Malagasy Ariary (MGA) currently exchanges at 3,763.66 Malagasy Ariary to $1 and placed fifth on the list.
6. Tanzanian Shilling (TZS)
The Tanzanian Shilling is the official currency in Tanzania. It is the sixth on the list and exchanges at 2305.10 Tanzania Shilling to $1.
7. Burundian Franc (BIF)
The Burundian Franc (BIF) is seventh on our list of the weakest African currencies. It currently exchanges at 1,887.96 Burundian Franc to $1.
8. Congolese Franc (CDF)
Do you want to start a business in Congo? Then you should be aware that the Congolese Franc exchanges at 1,710.00 to $1. This places the country 8th on this list.
9. Rwandan Franc (RWF)
Occupying the ninth position on this list is the Rwandan Franc. The currency started to be in circulation in the nation in the year 2960. it currently exchanges at 951.75 to $1.
10. Malawian Kwacha (MWK)
And the final position on this list is occupied by Kwacha, spent in Malawi. The exchange rate of the Malawian Kwacha is 735.30 to $1.