African Currencies 2020

A while back, we published an article about the performance of the most traded currencies in the world during this year and the strongest and weakest currencies in the world this year. But what about the less traded currencies in the different world regions. In this series of articles, we present the performance of the currencies per region against the Euro.

AFRICA

In general, all African currencies (except those with a fixed exchange rate) saw a devaluation against the Euro during 2020, although in some cases, it was much steeper than in others. It is also crucial to point out that most of these currencies count with a parallel market for foreign exchange and that trading with official rates is restricted in most cases.

 

The winners

Morocco (1€= 10,75 MAD) 

The sixth-largest economy in Africa, and popular tourist destination, Morocco, suffered a hit from COVID-19, mostly in the service industry. In contrast, the primary and secondary sectors of the economy have shown signs of recovery. The Moroccan currency was devalued by 0,19% during this year.

Libya (1€=1,58 LYD)

One of Africa’s Strongest economies, thanks to the Oil production that represents 90% of its exports, Libya’s fixed-rate Dinar presented a low devaluation in official terms, a 0,64% compared to the Euro. However, this can be different in the black market, which circulates enormous quantities of foreign currency.

Egypt (1€=18,29 EGP)

The third-largest economy in Africa, with growing foreign investments, Egypt, and the Egyptian pound, present themselves as one of the winners of 2020 in Africa. The EGP devalued by 1,67% during 2020. 

 

The losers

Cape verde (1€= 110,32 CVE)

With a Devaluation of almost 120%, the Cape Verdean Escudo is the African currency that performed worst in official terms during this year. This island nation bases its economy on tourism, which took a big blow during the year because of the pandemic.

Mozambique (1€=85,32 MZN)

The second country on our top worst currency performers in Africa is Mozambique. The national currency, the Metical, was devalued by 68,52% during 2020. The COVID-19 (coronavirus) pandemic reached Mozambique at a weak moment in its economic history. The country attempted to recover from two major shocks: the hidden debt crisis and cyclones Idai and Kenneth’s devastating effects in 2019.

Zambia (1€=23,97 ZMW)

Zambia has the 3rd worst performing currency in Africa. The kwacha lost 51% of its value during the year. With the COVID-19 showing Zambia’s weaknesses, the fall in demand for copper (Zambia is the second-largest producer in Africa) produced a significant weakening of the economy.

Here is a full list of the African currencies’ performance against the Euro.

 

Country Currency Rate to € jan Rate to € nov Change Abbreviated
Cape verde Cape Verdean Escudo 50,63 110,32 117,89 % CVE
Mozambique Mozambican metical 50,63 85,32 68,52 % MZN
Zambia Zambian Kwacha 15,79 23,97 51,80 % ZMW
Seychelles Seychellois rupee 15,34 22,51 46,74 % SCR
Angola Angolan Kwanza 541,04 775,09 43,26 % AOA
Sudan Sudanese Pound 50,63 64,41 27,22 % SDG
Ethiopia Ethiopian Birr 35,9 43,74 21,84 % ETB
Congo DR Congolese franc 1892,69 2290,24 21,00 % CDF
Lesotho Lesotho loti 15,71 19 20,94 % LSL
Namibia Namibian Dollar 15,71 19 20,94 % NAD
Swatini Lilangeni 15,71 18,99 20,88 % SZL
South africa South african Rand 15,71 18,94 20,56 % ZAR
Mauritius Mauritian rupee 40,8 46,56 14,12 % MUR
Algeria Algerian Dinar 133,56 150,12 12,40 % DZD
Madagascar Malagasy Ariary 4074,75 4573,33 12,24 % MGA
Kenya Kenyan Shilling 113,71 126,76 11,48 % KES
Botswana Botswana Pula 11,97 13,29 11,03 % BWP
Nigeria Nigerian  Naira 406,17 443,74 9,25 % NGN
Rwanda Rwandan franc 1056,02 1135,54 7,53 % RWF
Burundi Burundian franc 2116,28 2261,16 6,85 % BIF
Malawi Malawian Kwacha 826,19 879,73 6,48 % MWK
Guinea Guinean Franc 10696,78 11386,14 6,44 % GNF
Ghana Ghanaian Cedi 6,39 6,8 6,42 % GHS
Uganda Ugandan Shilling 4111,86 4355,4 5,92 % UGX
Sierra leone Sierra leonean leone 10940,96 11564,13 5,70 % SLL
Somalia Somali Shilling 643,81 680,11 5,64 % SOS
South Sudan South Sudanese pound 145,61 153,57 5,47 % SSP
Gambia Dalasi 57,53 60,28 4,78 % GMD
Tanzania Tanzania Shilling 2578,37 2700,52 4,74 % TZS
Zimbabwe RTGS dollar 406,07 422,595 4,07 % ZWD
Eritrea Eritrean Nafka 16,83 17,5 3,98 % ERN
Djibouti Djibouti franc 199,47 207,34 3,95 % DJF
Tunisia Tunisian Dinar 3,11 3,23 3,86 % TND
Mauritania Ouguiya 42,11 43,09 2,33 % MRU
Egypt Egyptian Pound 17,99 18,29 1,67 % EGP
Liberia Liberian Dollar 210,66 213,23 1,22 % LRD
Libya Libyan Dinar 1,57 1,58 0,64 % LYD
Morocco Moroccan Dirham 10,73 10,75 0,19 % MAD
CFA CFA franc 655,95 655,96 0,00 % XAF
Comoros Comorian Franc 491,97 491,95 0,00 % KMF
Santo Tomé & Principe St&P dobra 24,72 24,48 -0,97 % STN

 

 

 

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*Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider. Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance and position are not a guarantee of risk-free future returns.

 

Sources

https://fyggex.com/2020/09/17/fiat-currencies-after-covid-whats-your-bet/

https://fyggex.com/2020/08/13/the-egyptian-pound-a-new-hope/

https://fyggex.com/2020/08/19/libya-in-the-verge-of-economic-collapse/