In continuation of our searches for African countries with various exchange rates against the US dollar, we hereby present to you the 10 weakest African currencies against the US dollar currently. Broadly stated these are the African countries with the weakest exchange rates against the US dollar currently.
WHAT IS THE EXCHANGE RATE?
The exchange rate is regarded as the value of a country’s currency in relation to another currency. Using the United States dollar as a benchmark for example currently 1000 Nigeria Naira is equivalent to USD 2.43.
The exchange rate according to experts overviews could be summarised as the rate at which your country national money is exchanged for another country’s currency.
Realistically, if your country is having higher value local currencies, it will surely make your country’s imports less expensive and your country’s exports expensive in international markets thereby enabling the country to get richer in the long run.
A country with a strong exchange rate against the dollar means the ability of your country’s currency purchasing power when converted to the dollar or another foreign currency in international trades.
Currently, the American dollar is the most popular and internationally accepted modality of exchange across the globe and it is the easiest currency you can use to measure exchange transactions all over the world.
10 WEAKEST AFRICAN CURRENCIES AGAINST THE US DOLLAR CURRENTLY
1. SAO TOME AND PRINCIPE, Dobra. Sao Tome and Principle an island country located on the Equator in the Gulf of Guinea occupies the 1st position of African countries currently having the weakest currency exchange rate when converted to the US dollar. Currently, Sao Tome and Principle DobraSTD1,000 is equivalent to USD 0.048 as of 25th November 2021.
2. SIERRA LEONE, Leone. Sierra Leone, a West African country whose economy was negatively affected by COVID-19 is in the 2nd position of African country having the weakest exchange rate against the US dollar. Currently, Sierra Leonean LeoneSLL1000 is equivalent to USD 0.090 as of 25th November 2021.
3. GUINEAN, Franc. Guinea a French-speaking West African country whose economy has been resilient in the face of the global pandemic occupies the 3rd position on African countries with the weakest exchange rate. Currently, Guinean Franc GFr1000 is equivalent to USD 0.10 as of 25th November 2021
4. MALAGASY Ariary. Madagascar an island country located off the Southern coast of Africa east of Mozambique is having the 3rd weakest exchange rate against the US dollar in that if you convert Makagasy’s Ariary Ar1000 it will give you USD 0.25 as of 25th November 2021.
5. UGANDAN, Shillings. Uganda a landlocked country located in Eastern Africa whose economy is hugely damaged by the effects of COVID-19 especially the long lockdown is currently having the 5th weakest exchange rate in Africa. Right now the Ugandan Shillings UGX1000 is equivalent to USD 0.28 as of 25th November 2021.
6. TANZANIAN, Shillings. Tanzania an Eastern African country whose economy is one of Africa’s fastest-growing better than its regional counterparts is however having the 6th weakest exchange rate in Africa. Tanzanian TZS1000 is equivalent to USD 0.43 as of 25th November 2021.
7. BURUNDIAN, Franc. Burundi is a country located in the African Great region of East-central Africa whose economy is largely agriculturally based. According to the world bank, 80% of Burundians worked in Agriculture. This country is in the 7th position of the weakest exchange rate in Africa. Currently, Burundi’s Franc BIF1000 is equivalent to USD 0.50 as of 25th November 2021.
8. CONGO DEMOCRATIC REPUBLIC & REPUBLIC OF THE CONGO, Congolese Franc. Unsurprisingly two countries have a currency in that they are historically the same and are sitting on economic resources potentially great but largely misused. The Congolese duo are currently having the 8th weakest exchange rate in Africa. Congolese Franc CDF1000 is equivalent to USD 0.50 as of 26 November 2021.
9. RWANDA Franc. Rwanda is a landlocked country located in East-Central Africa. A country that is gradually becoming a reference point and the pride of Africa is currently having the 9th weakest exchange rate in the continent. Currently, Rwanda RWF1000 is equivalent to USD 0.96 as of 26th November 2021.
10. MALAWIAN, Kwacha. Malawi a landlocked Southern African country is unfortunately severely hit by the second wave of the coronavirus pandemic and it affected the country’s economic performance. Currently, Malawi is having the 10th weakest exchange rate in Africa in that its currency Kwacha MWK1000 is equivalent to USD 1.23 as of 26th November 2021.
THE BOTTOM LINE ON THE 10 WEAKEST AFRICAN CURRENCIES AGAINST THE US DOLLAR
Please note that the exchange rate is not static, it keeps changing all time depending on various factors prevalence at a given moment. A certain country can use a deliberate approach or policy at a given time which may surely affect the exchange rate, for example, a country such as China can deliberately fix its exchange rate in order to make its exportable commodities cheaper to sell to some fewer privilege countries.
Furthermore, a currency can be floated, fixed or hybrid. Depending on the circumstances a country can decide the exchange rate of its currency by making it stronger or making it weaker for a particular period because there is no rule in the international trade regulating the exchange rate.
Please note that under normal circumstances the demand and supply economic strength of a country should be the yardstick or factors that determine various exchange rates, apparently the theory is not applicable oftentimes.
That’s all for now on the 10 weakest African currencies against the US dollar currently.