According to a recent ranking published by Business Insider Africa, several African currencies stand out for their strength against the US dollar. While exchange rates fluctuate over time, these currencies continue to demonstrate relative resilience compared to many others on the continent.
1. Tunisian Dinar (TND)
The Tunisian dinar is frequently ranked among the strongest currencies in Africa. Its resilience is largely attributed to the Central Bank of Tunisia’s disciplined monetary policy and strict foreign exchange controls. The dinar is not freely traded on international currency markets. It has also benefited from Tunisia’s relatively diversified economy, which includes manufacturing, agriculture, extraction and processing of phosphate and tourism.
Interesting fact:
Unlike most currencies, which are divided into 100 cents, the Tunisian dinar is divided into 1000 millimes. As a result, prices can sometimes look unusual to foreign visitors. For example, a product may be priced at 1.500 TND rather than 1.50.
2. Libyan Dinar (LYD)
Despite years of political instability, the Libyan dinar (LYD) has remained relatively strong, supported by Libya’s substantial oil reserves, a tightly managed official exchange rate, and extensive government control over foreign exchange flows. Oil exports continue to play a central role in supporting the country’s foreign currency earnings and overall monetary stability.
Interesting fact:
The Libyan dinar derives its name from the Roman denarius, while the word dirham traces its origins to the ancient Greek drachma. These historical connections reflect the region’s long-standing role in international trade and commerce.
3. Moroccan Dirham (MAD)
Morocco’s currency combines a rich history with a modern economy closely connected to Europe and global markets. It is supported by a managed exchange rate regime linked to a basket of international currencies, primarily the euro and the US dollar. Morocco’s diversified economy — driven by industries such as phosphates, tourism, automotive manufacturing, and agriculture — helps reduce dependence on any single sector.
Interesting fact:
When the dirham was introduced in 1960, Morocco reused existing French colonial banknotes by overprinting them with new denominations. For example, a 100-dirham banknote was created from a former 10 000-franc note.
4. Ghanaian Cedi (GHS)
The Ghanaian cedi (GHS) experienced significant volatility in recent years. However, a combination of economic reforms supported by the International Monetary Fund (IMF), strong export revenues from gold and cocoa, and tighter monetary policy has helped improve stability and strengthen confidence in the currency.
Interesting fact:
The name cedi comes from the Akan word for “cowrie shell” (sedie). Long before the introduction of modern currencies, cowrie shells served as one of the primary forms of money throughout West Africa and played an important role in regional trade networks.
5. Botswana Pula (BWP)
The Botswana pula (BWP) has long been associated with economic stability. Its resilience is supported by prudent fiscal management, strong institutions, relatively low levels of corruption, and steady foreign currency inflows from the country’s diamond exports.
Interesting fact:
The word pula means “rain” in Setswana. In a country where rainfall is precious, the term has become a powerful national symbol representing prosperity, blessing, and good fortune.
Why Currency Strength Matters for Business
For companies engaged in international trade, treasury operations, and cross-border payments, currency considerations can have a direct impact on financial performance.
A stable and relatively strong currency can help businesses:
At MAGMA Finance, we support payments in four of these currencies, along with more than 120 additional currencies worldwide.
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