TRIBUNE
Having a weak currency poses a great challenge to the economy, most especially in the lives of the citizens. Investors nurse the fear of putting their money in a country where its currency is unstable and there is high inflation. To compete in the global market is a problem.
Therefore, this article will take a look at some currencies not performing so well in Africa:
1. Leone (SLL)
Leone tops one of the weakest currencies in Africa. It is the authorized banknote of Sierra Leone after being chosen over the British West African pound in 1964. It is issued by the “Central Bank of Sierra Leone.” To address the constant overvaluation eroding the nation, floating exchange was introduced. Due to high inflation for several years, Leone is unable to thrive as it should. 1 dollar is 22,509 in SLL.
2. Dobra (STD)
Dobra is the official currency of Sao Tome and Principe. The first notes were produced in 1977; replacing “escudos”. Over the years, inflation has made Dobra very unreliable; it was pegged with Euro in 2010 at the rate of 1 EUR to 24,500. Currently, a dollar to STD is 22,281.
3. Guinean Franc (GNF)
The Guinean Franc is the banknote of the Republic of Guinea-Conakry, formerly known as French Guinea. It was a French colony before it gained independence in 1958. The currency used during colonisation was CFA franc. The first Guineas franc was printed in 1959 but later changed to Guinean syli from 1971 to 1985 and it eventually became Guinean franc again in 1985. The exchange rate of a dollar to GNF now is 8,615.
4. Malagasy Ariary (MGA)
Malagasy Ariary is the currency of Madagascar. It was introduced in 1961 but used alongside franc until 2005 when Ariary became the official currency of the country. In early days, coins and banknotes were both used but franc was more prominent. Malagasy Ariary is 4,555 to a dollar.
5. Ugandan Shilling (UGX)
Ugandan Shilling is the only authorised currency of Uganda. It is handled by the Bank of Uganda (BOU) — which is solely authorised to mint coins, print banknotes including fiscal stability and monetary policy. The first official shilling in 1966 replaced the East African shilling that had been in operation. Presently, UGX is not pegged to any money. 1 dollar equals 3,712 in Ugandan shilling
6. Burundian Franc (BIF)
Burundian Franc is the only authorised money in Burundi. It was issued in 1964; that was after the German East African Rupie and the Belgian Congo currency. The Burundian franc is a floating currency, it is affected by supply and demand, economic and political factors and the market. The Central Bank of Burundi is responsible for managing and issuing banknotes. The current rate of 1 dollar to BIF is 2,877.
7. Congolese Franc (CDF)
The Congolese franc is the official notes of the Democratic Republic of Congo. The country accepts the U.S dollars and CDF for almost all financial transactions. The foreign exchange market is quite unregulated and the currency is very weak in value. A dollar is 2,865 in CDF.
8. Tanzanian shilling (TSZ)
The Tanzanian shilling is the national currency for the United Republic of Tanzania. It is issued by the Central Bank of Tanzania. It is not tied to any currency; although the USD is widely accepted in the country. This shilling had been in use since 1966 after the circulation of numerous currencies such as East African shilling, the East African Rupee, the Zanzibari Rupee and Zanzibari ryal. 1 dollar in TSZ is 2,700.
9. Malawian Kwacha (MWK)
Malawian Kwacha is the authorized banknotes of Malawi and maintained by its central bank called the “Reserve Bank of Malawi.” The Bank also implements monetary policies and ensures financial stability. Kwacha became a legal tender in 1977 after taking over from the Malawian pound. This currency is free floating; not matched with any notes but Malawi depends heavily on financial support from the International Monetary Fund (IMF). 1 dollar to MWK is 1, 735.
10. Naira (NGN)
Naira is the official currency of Nigeria. It replaced the British pound in 1973. The most common exchange rate in the country is the U.S Dollars. The Central Bank of Nigeria is in charge of distributing banknotes and ensuring financial stability and price control. The country’s currency is currently floating at the Forex market but a dollar to Naira is currently around 1,661.
THIS STORY FIRST APPEARED IN TRIBUNE
