The play of economic concepts both on the local and international scenes lead to strong or weak currencies and some African currencies have shown this within the first half of 2019.
Some African currencies have shown weaknesses within the first half of 2019.
This is due to economic downturns such as war actions, GDP decreasing, falling prices of commodities.
The currencies were measured with the strength of the US dollar.
The Sao Tome and Principe Dobra (STD) emerged first while the Congolese Franc (CDF) was the last according to the list.
Currency devaluation is often connected with badly organised monetary policy and relating to decisions of fiscal controls (Central Banking System).
In most cases, a state’s currency devalues because of economic downturn inside a country. This causes a balance of payments deficit and the inflation rate to grow.
This can be a consequence of different economic downturns such as war actions, GDP decreasing, falling prices of commodities that form large part of exports, purchasing power falling, credit conditions tightening, political instability inside a country among others.
The United States dollar is considered one of the strongest currencies in the world and it’s, therefore, an appropriate benchmark with which to measure the strength of some African currencies.
Whether you are travelling to any of these destinations or you are seeking a foreign exchange investment opportunity, it is important to become acquainted with the weakest currency in the continent.
In this article, we consider the weakest African currency within the first half of 2019.
1. Sao Tome and Principe Dobra (STD)
Sao Tome and Principe is noted to be Africa’s second-smallest country. Its currency, the Sao Tome and Principe Dobra (STD) is the weakest in Africa based on its exchange rate to the US dollar and its purchasing power.
One US dollar currently exchanges for 21,560.80 STD
2. Sierra Leone Leon (SLL)
The Sierra Leone Leon is the second weakest currency in Africa.
One US dollar exchanges for 9,197.51 SLL
3. Guinean Franc (GNF)
With 9,185.35 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 and the fourth on the list. It currently exchanges at 3,694.15 Ugandan Shilling to $1.
5. Malagasy Ariary (MGA)
Madagascar’s official currency is the Malagasy Ariary (MGA). The Malagasy Ariary (MGA) currently exchanges at 3,687.60 Malagasy Ariary to $1 and placed fifth on the list.
6. Tanzania Shilling (TZS)
The Tanzania Shilling is the official currency in Tanzania. It is the sixth on the list and exchanges at 2300.40 Tanzania Shilling to $1.
7. Burundian Franc (BIF)
The Burundian Franc (BIF) is the seventh weakest African currency. It currently exchanges at 1,843.05 Burundian Franc to $1.
8. Congolese Franc (CDF)
Currently, the rand exchanges at 1,665.00 Congolese Franc to $1. This places the country 8th among the list.