A weak currency fluctuates erratically or depreciates against foreign currencies.
This weakness is usually the result of unstable policy or taxation by the issuing country.
African currencies have become a trending topic lately as continents move towards using a single currency to foster economic unity and improve the value of goods and services.
This article gives a detailed list of Africa’s top ten weakest currencies in 2022 and their current exchange rate with the dollar. Let’s see.
Ranking of the ten weakest currencies in Africa in 2022
Sao Tome & Principe Dobra:
- Currency Name: Dobra
- Code: STN
- Current Exchange Rate with dollar: $1 = 21.62 Db
The dobra is the official currency of Sao Tome & Principe, a country in Central Africa. It was introduced in 1977, replacing the escudo.
Although known for the production and export of cocoa beans, the country’s economy has suffered significant losses due to persistent droughts in the region.
Abbreviated as Db, the dobra is divided into 100 centimos and is currently the weakest African currency
Burundian Franc:
- Currency Name: Franc
- Code: BIF
- Current Exchange Rate with dollar: $1 = 2000.88FBu
The Burundian franc ranks second in the list of Africa’s top 10 weakest currencies in 2022.
This consistent decline in value can be attributed to the protracted political wars between Hutus and Tutsis in Burundi, which caused many investors and business people to leave the country, disrupting the local and regional market.
The Burundian franc was introduced to the country in 1960 and is divided into 100 centimes.
Sierra Leonean Leone:
- Currency Name: Leone
- Code: SLL
- Current Exchange Rate with dollar: $1 = 11562.50 Le
Leone is the third on the list of the weakest currencies in Africa in 2022. It was introduced on 4th August 1964, replacing the British West African Pounds.
Although rich in key mineral resources, the country’s poor economy results from constant disease outbreaks and low productivity of manufacturing sectors.
The Leone is divided into 100 cents.
Guinean Franc:
- Currency Name: Franc
- Code: GNF
- Current Exchange Rate with dollar: $1 = 8992.68 FG
The Guinean franc was the official currency of Guinea from 1960 to 1972 and again since 1986. It is subdivided into 100 centimes, but no centime has been issued yet.
Like Sierra Leone, this country is also endowed with natural resources and fertile soil, with a favourable climate for agriculture. Its poorly developed infrastructure continues to present obstacles to investment projects.
Malagasy Ariary:
- Currency Name: Ariary
- Code: MGA
- Current Exchange Rate with dollar: $1 = 3977.83 Ar
The Malagasy ariary is the currency of Madagascar. It became the country’s official currency on January 1, 2005, replacing the franc.
The ariary is subdivided into five iraimbilanja and is one of the only two non-decimal currencies in the world.
Ugandan Shilling:
- Currency Name: Shilling
- Code: UG
- Current Exchange Rate with dollar: $1 = 3,512.61 Ush
The shilling is the monetary unit of Uganda.
The first Ugandan shilling (UGS) was introduced in 1966, replacing the East African shilling. However, following high inflation, a new shilling (UGX) was introduced in 1987 worth 100 old shillings.
The country is currently struggling to rebuild after two decades of insurgency, thus its position as the sixth weakest currency in Africa in 2022.
Tanzanian Shilling:
- Currency Name: Shilingi
- Code: TZS
- Current Exchange Rate with dollar: $1 = 2314.00 TSh
Although Tanzania enjoys relative economic stability, many of its citizens still live below the poverty line, and one dollar is worth 2,314 Tanzanian Shilling.
The country nevertheless occupies 7th place in this ranking of the top 10 weakest currencies in Africa in 2022, indicating its value over other currencies.
The Tanzanian shilling has been the official currency of Tanzania since 1966 when it replaced the East African shilling.
Congo & DR Congo’s Congolese Franc:
- Currency Name: Congolese Franc
- Code: CD
- Current Exchange Rate with dollar: $1 = 2015.50 FC
Like many African countries, the Democratic Republic of Congo is endowed with natural wealth. This, however, did not help its economy. One dollar is worth 2015.50CDF.
The Congolese Franc has been the official currency of the Democratic Republic of Congo since June 30, 1998. It was also the official currency of the Congo Free State from 1887 to 1908; of Belgian Congo, from 1908 to 1960; and Congo under the presidency of Joseph Kasa-Vubu, from 1960 to 1964
Rwandan Franc:
- Currency Name: Franc
- Code: RWF
- Current Exchange Rate with dollar: $1 = 1039.99FRw
The franc is the currency of Rwanda. It was introduced in 1960 and began the country began issuing its francs in 1964, two years after gaining independence.
Because the country imports far more goods and services than it exports to the outside world, it has suffered significant economic drawbacks.
The Rwandan Franc is subdivided into 100 centimes.
Malawian Kwacha:
- Currency Name: Kwacha
- Code: MW
- Current Exchange Rate with dollar: $1 = 805.80 K
The Kwacha closes this ranking of the top 10 weakest currencies in Africa in 2022. It became the currency of Malawi in 1971, displacing the Malawian pound.
It is divided into 100 tambala.
The low economy of the country can be attributed to changes in government policy, such as the removal of currency swap mechanisms that had previously held the Kwacha steady in times of lower reserves.
Conclusion
As you have seen in this article, the Sao Tome & Principe’s Dobra is the weakest currency in Africa at the time this article is written.
Leone ranks 3rd in the list while the Malawian Kwacha takes the 10th position in the top weakest currency in Africa.