Currencies of 4 smaller African countries that are stronger in trade than Naira in 2017

shakirudeen taiwo

October 16, 2017 1:10 PM

Nigeria is the giant of Africa, but these currencies are more giant than the Nigerian Naira.

In Africa, Nigeria is the biggest economy and thus its currency is expected to be a major relying point for trade and commerce in the region.

However, the strength or value of a country’s currency is attached to its purchasing power parity, which, most times, is a reflection of the economic strength of a country in comparison to others.

Using this dollar-based benchmark, here are seven currencies that are stronger and more viable to be used for trade and commerce than Nigerian currencies.

1. Libyan Dinar LYD - 1$ = 1.37 and N263.14 = 1 Libyan Dinar

Despite the ongoing crisis in the North African country, Libya still has the strongest currency in Africa and one that is stronger than Naira using its exchange to US dollars and purchasing power parity.

One US dollar goes for about 1.37 Libyan dinar, while it will take about N263 to get a Libyan Dinar using Nigerian Naira.

With this, it shows that with 13.7 Libyan Dinar, you could get $10, which would cost you around N3600 in Nigerian currency.

2. Ghanaian Cedis GHS - $1 = 4 cedis and N82.3 = 1 cedi

Ghanian cedis is another currency in Africa whose value using the exchange rate to US dollars and purchasing power parity is stronger than the Nigerian Naira.

Using the current exchange rate, $1 goes for 4 Ghanaian cedis, while with Nigerians, N368 = $1. This means that a Ghanaian businessman is in a better trade position than his Nigerian counterpart in cost of US dollars which is the major currency of trade.

3. Sudanese Pounds SDG - 1$ = 6.4 and N53.89 = 1 Sudanese Pound

Sudan is another country experiencing civil war but managing to retain the value of its currency.

At present, it would take N53.89 to get a Sudanese pound while exchanging 6.4 Sudanese pounds for $1.

4. Moroccan Dirham MAD - 1$ = 10 and N38.24 = 1 MAD

Morocco also has one of the strongest currencies in the region. Its currency exchange for 10 Moroccan dirhams is $1.

For a Nigerian trader or businessman, it would be better and more cost-effective to trade using this currency to get the US dollars for their business operations.

shakirudeen taiwo

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng