List of strongest African currency emerges as Nigeria, others fall behind

• A strong currency protects the purchasing power of its inhabitants and lessens the likelihood of hyperinflation
• It is a sign of a nation's successful monetary policy, low inflation, and steady balance of payments
• Robust currencies make trade between African countries easier and more equal to reduce reliance on external currencies

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market

A robust economy is often indicated by a strong currency. It is a sign of a nation's successful monetary policy, low inflation, and steady balance of payments.

Nigeria falls behind as Tunisia, Libya, other countries’ currency are named strongest
Source: Getty Images

Furthermore, a strong currency preserves the purchasing power of its inhabitants and lessens the likelihood of hyperinflation.

This boosts investor and consumer confidence, which leads to increased economic activity and growth.

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The strength of national currencies is becoming more significant as Africa works toward greater economic integration through programs like the African Continental Free Trade Area (AfCFTA).

Robust currencies lessen dependency on foreign currencies like the US dollar or the euro and promote easier and more equitable commerce amongst African countries.

In addition to improving pricing stability and fostering regional economic cohesiveness, this can reduce transaction costs. Strong currency holders can be essential to the success of intra-African trade, which benefits the whole continent.

On this note, Billionaire.africa uses Forbes Currency Converter to list the top ten strongest African currencies for August.

Another currency emerges as best-performing in Africa

Legit.ng reported that the Kenyan shilling currency has risen to a 15-month high against the US dollar.

The last time the shilling performed this strong was in March last year, rising from Shs161 per dollar to Shs128.66 to remain one of the best-performing currencies in Africa.

Reports show that the performance is due to improved agricultural export inflows as dollar demand thaws among importers.

Source: Legit.ng