The Values of the Top Ten African Currencies Compared, as researched in South Africa shows that currency value is based on many things such as supply and demand, inflation, the stability of the country. We will look into these factors in more detail.
Currency value is based on these external factors
Supply and demand
The value of a currency is determined by supply and demand, domestic and global.
When the demand for a currency exceeds the supply of the currency, the currency’s value will increase. Conversely, if the demand for a currency is low and the supply is high, the value of the currency will depreciate.
Economic factors in a country may and can affect the supply and demand of its currency. Factors such as economic strength (a major factor), high unemployment rate, the interest rate, and the debt-to-GDP ratio, compares a country’s debt obligations with what it owes.
Political factors are also influential in the supply and demand of a country’s currency. For example, unpopular monetary policies and labour laws that restrict trade.
Inflation
Inflation gradually weakens the purchasing power of a country’s currency, causing increases in the cost of local goods and exports, making them unattractive or less appealing to foreigners.
Express differently, increasing inflation may decrease the demand for a currency, causing the currency to depreciate in value. The opposite is also true.
Stability of a country
Countries with political stability and the absence of violence are attractive destinations for foreign investments. A significant influx of foreign investments will appreciate the value of a country’s currency.
Money supply
The money supply of a country refers to all the money circulating in the country at a given point of time. The money supply includes, inter alia, cash (paper notes and coins) and other liquid instruments, such as deposits, which can easily be converted into cash.
The lower the supply of money, the higher the currency value, and vice versa.
Foreign exchange reserve
Foreign exchange reserves refer to the number of foreign currencies held in reserve by the central bank of a country. These reserves are used to influence a central bank’s monetary policy.
Most of the foreign currencies are held in U.S. dollars (USD), euros (EUR), British pounds (GBP), Japanese yen (JPY), and Chinese yuans (CNY), because they are the most traded currencies in the world.
The most important reason to keep foreign currencies in reserve is to allow a central bank to manage the value of a country’s currency, keeping it from devaluing.
A comparison of the values of the top ten currencies in Africa in 2025
How is the value of a currency measured?
How is the value of a currency determined? Put in other words, who decides how much a currency is worth?
The most common method to determine currency value is to measure it against other currencies, referred to as the exchange rate. In other words, how many units of one currency are needed to by one unit of another currency?
There are two types of exchange rate systems, depending on the type of currency involved: a fixed currency or a floating currency.
Fixed Currency
A fixed or pegged currency is when a country pegs the exchange rate of its currency to the exchange rate of another country’s currency. Typically, a currency is pegged to one of the most traded currencies in the world such as the U.S. dollar (USD), the euro (EUR), or the Japanese yen (JPY).
When a fixed exchange rate applies, the values of both currencies move in the same direction.
The value of the pegged currency is either at par with the other currency or it is a specified amount of what the pegged currency is worth in terms of the other currency. For example, the Belizean dollar, the currency of the central American country, is pegged at one-half of a U.S dollar. Put differently, one U.S. dollar is worth two Belizean dollars.
Examples of pegged African currencies are:
The CFA franc, used by eight countries in western Africa and six countries in central Africa, is pegged at a fixed rate against the euro, requiring the fourteen African countries to deposit 50% of their foreign exchange reserves with the French treasury.
The Djiboutian franc (DJF) and Eritrean nakfa (ENF) are both pegged against the U.S. dollar.
The loti of Lesotho (LSL), the Namibian Dollar (NAD), and the Swazi lilangeni (SZL) of Eswatini are all pegged to the South African rand (ZAR) at par.
Floating currency
A floating currency system allows the forex market to determine the value of a currency, based on the supply and demand of other currencies and several other economic factors.
Keep in mind, the values of floating currencies change constantly. Hence, by the time you may execute the conversions of the currencies included in the exercise, the results may have changed slightly (or significantly) due to exchange rate volatility.
The method followed to compare the values of the currencies
The comparison focuses on the top ten African currencies with the highest exchange rates against the U.S. dollar, as measured at the end of 2025.
Furthermore, the values of the top ten currencies in relation to the U.S. dollar on Friday 31 December 2025 are compared with their values expressed in U.S. dollar terms on 31 January 2025. The object of the exercise is to determine how their values have changed during the first month of 2025.
Also, the value of the South African rand (ZAR) on 31 January 2025 is evaluated, in terms of the U.S. dollar, against the values of the other top African currencies on the specific date.
In addition, a few comments are made about the gross domestic product (GDP) of the countries. GDP refers to the total value of goods produced and services delivered within the borders of a country over a given period of time, such as a year or quarter.
It is considered one of the most important economic indicators to determine the performance of the economy of a country. Changes in the GDP indicate changes (negative or positive) in a country’s economic growth.
When economic growth is strong, businesses and investors have the confidence to increase investments or to start investing, increasing the demand for the country’s currency, which will increase the value of the currency.
Unfortunately, the opposite is also true. A weakened economy will eventually cause a country’s currency to depreciate.
Comparisons
Tunisian dinar (TND)
The Tunisian dinar, with the currency sign DT, is the currency of the Republic of Tunisia, the smallest nation in North Africa.
The TND replaced the French franc in 1960 and is issued by the central bank of Tunisia. The dinar is pegged to a weighted basket of currencies, including the U.S. dollar, the Japanese yen, and the euro, which is the dominant currency in the basket.
The Tunisian dinar, subdivided into 1000 milim, is what is called a ‘closed currency,’ meaning it is a criminal offence to either export or import the dinar out or in of the country.
Value – end of 2025
One U.S. dollar to TND = 2.8757 or one TND to USD = 0.3477, indicating that TND 1000 bought $347.70, which was $287.26 more than what 1000 Zambian kwachas (ZMW), the tenth strongest African currency in 2025, could buy.
Value – 31 January 2025
TND 1000 converted to USD 344.34, a decrease of $3.36 or 0.97% during the first month of 2025.
Value of ZAR against the TND on 31 January 2025
One Tunisian dinar converted to ZAR 5.2941. Conversely, one South African rand (ZAR) was equal to TND 0.18889, which means that ZAR 1000 = TND 188.89.
GDP
In 2025, Tunisia had the fourteenth highest GDP in Africa – $44.27 billion. According to statistics provided by Statista, over the period 2010 – 2025, the services sector contributed approximately 61.31% to Tunisia’s GDP, followed by industry (21.75%), and agriculture (11.74%).
Libyan dinar (LYD)
The Libyan dinar, with the currency sign LD, is issued by the National Bank of Libya which is known for its strict monetary policies.
Notwithstanding political unrest since 2011, the Libyan dinar has been a stable currency, making it the second most valuable currency in Africa in 2025.
The dinar is subdivided into 1000 dirhams.
Value – end of 2025
One US dollar = 4.5742 Libyan dinars, or one LYD = USD 0.2186, giving a buyer of U.S dollars 218.60 dollars for 1000 Libyan dinars.
Value – 31 January 2025
At the end of January 2025, 1 000 Libyan dinars converted to $216.93. This figure indicated that the LYD has lost $1.67 in U.S. dollar value during January, which is a decline of 0.76%.
Value of ZAR against the LYD on 31 January 2025
A transaction of ZAR 1000 provided LYD 297.68.
GDP
Libya’s GDP was the nineteenth highest in Africa for 2025, namely $24.27 billion. Statista reported that the ‘country’s real Gross Domestic Product (GDP) declined dramatically by over 60 percent’ in 2025. This was the sharpest decline in GDP of all the North African countries for 2025. The contraction was mainly caused by the Covid-19 pandemic.
Libya’s economy relies heavily on the export of oil. It is also rich in resources such as gold and silver.
Ghanaian cedi (GHS)
The Central Bank of Ghana introduced the Ghanaian cedi (GHS) on 3 July 2007, replacing the (second) cedi at a rate of GHS = 10 000 second cedis.
In fact, the cedi issued in 2007 is the third cedi in circulation since 1965. The first cedi was used from 19 July 1965 to 22 February 1967. It was replaced by the second cedi on 23 February 1967 and was used as official currency until 2 July 2007.
The Ghanaian cedi, with the currency symbol GH₵, is subdivided into 100 pesewas.
The cedi, the strongest currency in Sub-Saharan Africa, is the official currency for both the Republic of Ghana and the Northern region in Togo.
Value – end of 2025
One USD converted to 6.1549 GHS and 1 Ghanaian cedi was worth USD 0.16247, allowing a buyer to receive $162.47 for 1000 cedis.
Value – 31 January 2025
One USD was worth GHS 6.2596 and one GHS converted to USD 0.15975, making 1000 cedis worth $159.75, representing a decrease of 1.67% or $2.72 since the end of 2025.
Value of ZAR against the GHS on 31 January 2025
The ZAR converted to GHS 0.40593, which implies that ZAR 1000 was exchanged for GHS 405.93.
GDP
The size of Ghana’s GDP in 2025 was $74.26 billion. Statista mentioned that the following sectors were the major contributors to the GDP of Ghana over the period 2010 to 2025:
- services sector: 42.63%
- industry sector: approximately 34.69%
- agriculture: 18.24%
Moroccan dirham (MAD)
The Moroccan dirham (MAD), with the currency symbol DH, is issued by the Central Bank of Morocco, the Bank Al-Maghrib.
The MAD is the official currency of Morocco as well as the de facto currency in Western Sahara. The currency is subdivided into 100 santims.
Similar to the Tunisian dinar, the Moroccan dirham is a ‘closed currency,’ meaning it is illegal to take the dirham out of Morocco.
Value – end of 2025
One USD = 9.2799 MAD, or one dirham = 0.1078 USD, amounting to $107.79 when MAD 1000 were converted to U.S. dollars.
Value – 31 January 2025
1 MAD exchanged for $0.10593, and MAD 1000 converted to $105.93, indicating a loss in value of $1.86 or 1.72% since the end of 2025.
Value of ZAR against the MAD on 31 January 2025
The exchange rate was ZAR 1 = MAD 0.6136, meaning a buyer could exchange ZAR 1000 for MAD 613.60.
GDP
In 2025, this northern African country achieved a GDP of $124 billion, making it the fifth richest country on the continent.
The services sector, including wholesale and retail trade, transport, public administration, and hospitality industry, accounts for more than 50% of Morocco’s GDP, followed by manufacturing, construction, electricity and water supply, and mining.
Botswanan Pula (BWP)
The Bank of Botswana launched the Botswanan pula on August 23, 1976, subsequently referred to as ‘Pula Day.’
The pula replaced the South African rand (ZAR), which was Botswana’s official currency since independence in 1966, at par. Hundred days after the pula was launched, the ZAR ceased to be legal tender in Botswana.
The BWP is subdivided into 100 thebe and has the currency symbol P. It is the most valuable currency in southern Africa.
Value – end of 2025
The exchange rate was $1 = BWP11.7040 and 1 BWP exchanged for $0.08541, which converted 1000 BWP to $85.44.
Value – 31 January 2025
One month into 2025, 1 pula converted to 0.08615 USD, and 1000 pula to $86.15, increasing the value of the pula in terms of the U.S. dollar by 0.83% or $0.71 in monetary terms during the first month of 2025.
Value of ZAR against the BWP on 31 January 2025
The exchange rate was 1 ZAR = 0.75458 BWP, allowing a buyer of pula to buy 754.58 BWP with 1000 ZAR.
GDP
Botswana’s GDP is ranked twenty-fifth of the African economies. Its economy relies heavily on mining (especially diamond mining) and tourism.
Seychellois rupee (SCR)
Although small, this island country located in the Indian Ocean has one of the strongest currencies in Africa because of the strict monetary policy of the Central Bank of Seychelles.
The Seychellois rupee (SCR) is subdivided into 100 cents and is identified by the currency symbol SR or SRe.
Value – end of 2025
1 USD converted to 13.6063 SCR and 1 SCR to 0.073497 USD, which means 1000 SCR converted to $73.50.
Value – 31 January 2025
One Seychellois rupee converted to $0.0695, meaning SCR 1000 bought $69.50. In January 2025, the SCR decreased $4.00 or 5.44%.
Value of ZAR against the SCR on 31 January 2025
Exchange rate was 1 ZAR = 0.8692 SCR or ZAR 1000 = SCR 869.20.
GDP
In terms of U.S. dollars, the GDP of Seychelles is ranked fifty-second on the list of GDPs of African countries. However, the island country has the highest nominal GDP per capita in Africa in U.S. dollar terms.
Its economy is mostly driven by tourism and the import-export sector.
In 2025, travel and tourism contributed approximately 22% of the nation’s GDP. This was a sharp decline from the 39% contribution in 2019, mainly due to the impact of the Covid-19 pandemic.
Eritrean nakfa (ERN)
The Eritrean nakfa (ERN), with the currency symbol Nfk, was introduced on 8 November 1997, replacing the Ethiopian birr.
The currency, subdivided into 100 cents, is issued by the Bank of Eritrea. The ERN is a stable currency with a high currency value because it is pegged to the U.S. dollar at a fixed rate of $1 = ERN 15.
Value – end of 2025
The conversion rate was one nakfa = 0.0666 USD, amounting to $66.66 for 1000 ERN.
Value – 31 January 2025
The conversion of nakfa to U.S. dollar was the same as on 31 December 2025: ERN1000 = $66.66.
Value of ZAR against the ERN on 31 January 2025
One ZAR = 0.9607 ERN and 1000 ZAR = 960.70 ERN.
GDP
Eritrea, located in the horn of Africa, is predominantly an agricultural country, with an economy based on the producing of agricultural products.
In 2025, Eritrea was affected by a locust invasion as well as the Covid-19 pandemic. This caused a decrease in the GDP compared to the previous year. The GDP declined to $2.09 billion in 2025. One of the major contributors to the country’s GDP is metal exports.
South African rand (ZAR)
The South African rand (ZAR), with the currency symbol R, was introduced in February 1961. The South African Reserve Bank (SARB) is the issuer of the ZAR and is mandated by the constitution of the country to protect the value of the ZAR.
The currencies of three of its neighbouring countries (Eswatini, Lesotho, and Namibia) are pegged to the South African rand. In addition to the respective national currencies, the ZAR is also legal tender in these countries.
The ZAR is subdivided into 100 cents.
Value – end of 2025
Exchange rate was 1 USD = 15.950 ZAR or 1 ZAR = 0.062696. Hence, 1000 ZAR were exchanged for $62.70.
Value – 31 January 2025
The exchange rate was one ZAR = 0.0652 USD, allowing a buyer of U.S. dollars to purchase $65.20 with 1000 ZAR. The ZAR appreciated in value against the U.S.dollar by 3.99%.
GDP
South Africa has the third strongest economy in Africa with a GDP of $329.53 billion in 2025.
The main sectors contributing to the country’s economy are services (including finance, real estate and business services, and government services), transport, storage and communication, manufacturing, mining, and agriculture.
Egyptian pound (EGP)
The Egyptian pound (EGP), with the currency symbol E£, has been in circulation for more than 200 years. The National Bank of Egypt issues the country’s national currency. The financial sector of Egypt is one of the largest in Africa.
The EGP is subdivided into 100 girsh/piastres.
Value – end of 2025
The conversion rate was one USD = 15.6822 EGP. Inverse – one EGP = 0.0635 USD, amounting to $63.50 for 1000 EGP.
Value – 31 January 2025
1000 EGP converted to 63.60 USD, slightly more than the amount of $63.50 on December 31, 2025.
Value of ZAR against the EGP on 31 January 2025
One ZAR = 1.0220 EGP, amounting to 1022 EGP for 1000 ZAR.
GDP
Regarding the size of GDP, Egypt is one of three countries in North Africa that are in the top ten economies in Africa in 2025. Egypt had the second-highest GDP in Africa in 2025 – $394.28 billion.
According to Statista, the following economic sectors contributed to Egypt’s GDP in 2025:
- services sector: 51.65%
- industry sector: 31.8%
- agriculture: 11.51%
- Zambian kwacha (ZMW)
The Zambian kwacha (ZMW), with the currency sign ZK, is issued by the Bank of Zambia.
The kwacha, subdivided into 100 ngwee, replaced the Zambian pound. The Zambian pound notes and coins were finally removed from circulation on January 16, 1986.
Value – end of 2025
One USD converted to 16.544 ZMW. Inverse – one ZMW = 0.06044 USD, giving a buyer $60.44 for 1000 ZMW.
Value – 31 January 2025
1000 ZMW converted to 55.60 USD, a depreciation in value of $4.84 or 8.01%.
Value of ZAR against the ZMW on 31 January 2025
One ZAR = 1.1691 ZMW, which means that 1000 ZAR were exchanged for ZMW 1169.
GDP
Zambia has rich mineral sources, with copper the most dominant one, making the country the largest producer of copper on the continent.
Statista reported that Zambia’s GDP amounted to approximately $19.32 billion in 2025. The main contributors were:
- services sector: 48.32%
- industry sector: 42.74%
- agriculture: 2.73%
Summary of comparisons
| Currency | Value of 1000 units in U.S. dollars (End of 2025) | Value of 1000 units in U.S. dollars (31 January 2025)2 | Value of 1000 ZAR in specified currency |
|---|---|---|---|
| Tunisian dinar (TND) | 347.70 | 344.34 | 188.89 TND |
| Libyan dinar (LYD) | 218.60 | 216.93 | 297.68 LYD |
| Ghanaian cedi (GHS) | 162.47 | 159.75 | 405.93 GHS |
| Moroccan dirham (MAD) | 107.79 | 105.93 | 613.60 MAD |
| Botswana pula (BWP) | 85.44 | 86.15 | 754.58 BWP |
| Seychellois rupee (SCR) | 73.50 | 69.50 | 869.20 SCR |
| Eritrean nakfa (ERN) | 66.66 | 66.66 | 960.70 ERN |
| South African rand (ZAR)* | 62.70 | 65.20 | 1000 ZAR |
| Egyptian pound (EGP)** | 63.50 | 63.60 | 1022 EGP |
| Zambian kwacha (ZMW) | 60.44 | 55.60 | 1169 ZMW |
Notes:
*Although the ZAR was less worth in U.S. dollar terms than the EGP at the end of 2025, its value increased in 2025, exceeding the value of the EGP at the end of January 2025.
**Only three currencies have increased in terms of dollar value during January 2025: the Botswanan pula, the South African rand, and the Egyptian pound, although only slightly.
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