What up guys? I will be your host on our today’s topic, the top ten weakest currencies in Africa. As a matter of fact, it is a prevalent discussion among youths of many Africa countries today, also it is a burning and cogent matter that many business analysts undergo that most of them quickly come upon the business platform to know the Africa country with the least or currency with least value. Sit back as we will be taking and wring interesting you need to know about this topic and how currencies of most nation get devalued, it is not our work to do justice or do the ranking but we get our updates from the world ranking body and as a financial expert we underwent the probable problems that amount to this and also study carefully the economical factor of each country on this list, why not take a back seat, read carefully, shares with friends and add to your knowledge store about Africans’ currencies and their value
TOP 10 WEAKEST CURRENCIES IN AFRICA 2018
WHAT IS CURRENCY?
This is a question that looks rhetorical and most people get to think currencies has to do with the money we move up and down in our purse and bank accounts. Funniest thing about the issue of currency is, whenever it is being made mention of, what come to some average individual mind is money, and the shocking fact is the real identity of a currency only splashes through the mind of an expert or someone who has read this write up or someone in the financial world.
Currency in the actual sense is a system of money, a worth of a 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. This literally means, without a currency system anything called money is not money in the actual sense, a money is only recognized as a money when it is allotted a value (currency)|. Even though we are not here to do justice to differences between money and currency, but what we just what to drive at is, a currency is a system of exchange that makes use of money while a money is a material used for an exchange.
Top 10 Weakest Currencies in Africa 2018
Now to the proper listing of the nation with the cheapest currencies in Africa, we will be going in ascending order and they are as follow;
Top 10 Lowest Currencies In Africa 2018 (Cheapest & Weakest)
SAO TOME AND PRINCIPE DOBRA (STD)
Yes, the first position on this list is Sao Tome and Principe currency which is Dobra. It carries a currency code of STD; this currency is so weak that for you to get a bottle of coke or another refreshment you need about 19,000 STD. the currency is equivalent to $1 US dollars is 2159,95 STD. sound hilarious right? that is the level of degradation that happens to this country.
GUINEAN FRANC (GNF)
On the second position of the weakest currencies in Africa is the Guinean currency which is Franc; the country currency code is GNF. This has its root in the economic problem of this country. The standard of living in this nation is reduced, to get a bottle of cokde you need about 4,400 GNF. A dollar to GNF is about 9,0970.55 GNF.
SIERRA LEONEAN LEONE (SLL)
On the position of the 3rd weakest currency in Africa is Sierra Leone. The currency code of the currency is SLL, this currency in exchange for US dollars is 7705 SSL to $1 US dollars.
UGANDAN SHILLING (UGX)
This is another Africa country that sat in the 4th position in the list of the top ten cheapest currencies in Africa. The country operates shilling as their currency and the code for this currency is UGX, which translate that One US dollars are equivalent to 3700 UGX.
MALAGASY ARIARY (MGA)
This is another country on the shore of Africa engrafting herself in the 5th position of the list of African lowest currencies. All forces are in place in this nation to keep the economy and value at a reasonable rate, extraction and other stuff are made available but due to lack of investors from everywhere has held this nation in the hardship of devalued currency. The currency code of this nation is Ariary and on equivalent rate, $1US dollars is 3285 Ariary.
TANZANIAN SHILLING (TZS)
On the list sitting on the 6th position is the shilling used by the country Tanzania. This nation also is another exceptional country that one should wonder what is responsible for the level of currency devaluation after her political stability, booming and naturally expanding the economy, yet the currency still finds itself on the list of the weakest currency in Africa. The currency code of this currency is shilling, and it has a currency of 2278.80 shilling which is equivalent to $1 US dollars.
BURUNDIAN FRANC (BIF)
Rightly and well position on the 7th position is the Franc, which is spent in Burundi. It has a currency code of BIF. The government of Burundi has a strict regulation in place to see to unnecessary fall or devaluation of currency yet it is of no importance because the value of this currency keeps falling on a daily basis. In exchange, 1785 BIF will be exchanged to just $1 US dollars, and which also has a larger impact on the standard of living of the citizen of this country.
CONGOLESE FRANC (CDF)
The list of the nation with weak currency or devalued currency will not be complete if the currency of this nation is passed by. The federal republic of Congo makes use of Franc which the currency code is Franc. Writing about this nation, it will be an injustice to make mention of the giant stride this nation has made in the area of copper productions. This country is ranked as one of the largest producers of copper in a different nation, yet they have a devalue currencies which many factors can be responsible for. In exchange, 1615.00 Franc will be a replacement for just $1 US dollars.
RWANDAN FRANC (RWF)
Yes, it is clearly written, on the 9th position in Africa in our listing of the weakest currency in Africa is the Franc of Rwanda. It has a currency code of Franc. This currency started to be in circulation in this nation since the year 1960, progressing from then, the nation has not really recovered from the currency that has been devalued from the year. In exchange, Rwanda franc of 865.00 will be exchanged for $1 US dollars.
MALAWIAN KWACHA (MWK)
On the final position in the listing in Africa weakest currencies is Kwacha that is being used in Malawi today. The currency code is Kwacha. Even though the government of this nation is trying every possible dart to connect with other nation striving well in the world. The exchange rate of Malawian Kwacha to US dollars is 726.33 Kwacha to $1 US dollars.
FACTOR CONTRIBUTING TO DEVALUATION OF A CURRENCY
Actually, a currency just doesn’t lose its value in just a tweak of an eye, it is as a result of some factors which play important roles in either giving much value to a currency or going as far as shrinking it dead and render the value of the currency useless in the international market. And if these factors do not carefully work with and the financial body of a nation did not plan so well in improving and sitting up so as to ensure every iron is in fire, her is every tendency the national currency is devalued because right in the international community, there is a consistent and fierce looking market competition that it takes only a good currency that is consistency in value to respond to the move and tide of the competition.
We will be listing and wring few and most important of them here and they are.
- INTEREST RATE
Starting with among the militating factors to currency devaluation is the interest rate. Interest rate a particular country assigned in a specific investment capital pulls more investors to the investment arena such nation. If a country maintained a very encouraging interest, interestingly there will be more investors even outside the wall of the nation which brought about international participation which will invariably affect eh value of the nation’s currency. So, the higher the interest rate the higher the value of a national currency.
- COUNTRY DEBTS/ GOVERNMENT INHERITED DEBT
This has to be a threat to any national and governments especially in most Africa countries, just like many Africa countries are found of getting a loan from the international community, and some of these leaders are so corrupt that they refused to pay back in speculated time which invariably push the debt to a new government most of government spent time servicing a debt of over 10 years back this has a considerable effect on such nation investment because many investors are scared of investing in such nation and some that have a bond with the country sell them off to avoid running at lose.
This is another bane to many nations. Talk of the fast factors that devalue a nation’s currency quickly and crushes the economy of any nation like a killer jet. Whenever there is high inflation in any country the currency values depreciate, a total number of goods available for export dropped, the production process is affected and the distribution chain is drastically affected, this has a resultant effect in a currency value of any nation.
- POLITICAL INSTABILITY:
This is predominated in Africa countries, inconsistency in the system of government, lack of continuity and ability of any new government to further what a new administration has started.
- INTERNATIONAL MARKET PARTICIPATION:
This is done by the exportation of goods by a particular nation, making international transactions by her citizens, exchange of good and services, this play major roles in enhancing the national currency to a very large extent if not the core factor of currency devaluation.
Yes, this is a super buster effect of country financial error, when there are issues with the financial body of a particular nation, if some rules are misapplied or new development in the business environment, it results in a downtime in the economic system of such government which plays a major factor in the value a currency carry.
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CONCLUSION ON THE WEAKEST CURRENCIES IN AFRICA 2018
We have been able to take you on a ride to the whole continent of Africa and we have to be able to do justice to the nation in the continent of Africa that has the weakest currencies.
Tags: Top 10 Weakest Currencies In Africa, Lowest, Cheapest African Currency