Top 10 African countries with weak currencies against the dollar in 2021

Top 10 African countries with weak currencies against the dollar in 2021

This article discusses African countries with weak currencies against the dollar in 2021.

The value of a country’s currency is determined by its exchange rate when compared with other currencies in the world.

According to The Economic Times, currency valuation is the exchange rate of a sovereign country’s currency vis-a-vis others, it depicts the monetary-value nexus between their goods and services.

Now part of the implication of the strength of a currency in international trade is that it is cheaper to export goods from countries with weaker currencies to countries with stronger currencies. While it is expensive for countries with weaker currencies to import commodities from countries whose currencies are stronger.

In Africa, poor economic policies by governments, poor economic fundamentals, security issues, military coups among other factors, have led to countries having weaker currencies against the United States Dollar.

The US Dollar is the most used currency for international trades in Africa.

 

 

  1. São Tomé and Príncipe’s Dobra: The Dobra is presently the weakest currency in Africa and occupies the number one slot on the list. As at the time of this publication, the Dobra when converted to dollars, STD 1000 would give you $0.047
  2. Burundian franc: Burundi’s sovereign currency is currently the second weakest and less-valued currency in Africa, when converted FBu1000 will give you $0.050.
  3. Sierra Leonean Leone: This is the official currency of the West African country of Sierra Leone, and it is the third weakest in Africa. SLL 1000 converts to $0.094.
  4. Guinean Franc: The Guinean Franc ranks 4th weakest currency in Africa. Guinean Franc. GFr 1000 would give you just $0.10.
  5. Malagasy Ariary: This currency currently occupies the 5th position on this list. When converted, Ar 1000 will get you $0.25.
  6. Ugandan Shillings: The Ugandan Shillings rank 6th among the weakest currencies in Africa. On converting Ush 1000 to the dollar, you will only get $0.28.
  7. Tanzanian Shillings: Tanzanian Shillings comes in 7th position. Tsh 1000 converts to $0.43.
  8. Congolese Franc: This currency is used in both the Republic of Congo and the Democratic Republic of Congo. It occupies the 8th position on the list. When converted to the Dollar, CDF 1000 would give you $0.50.
  9. Rwandan Franc: When converted, RWF 1000 equals $1, and ranks 9th on the list.
  10. Malawian kwacha: 1000 MWK converts to $1.22. It is ranked 10th on the list of weak African currencies against the US Dollar.

 

 

Source: Business Insider

Author: Greg