BY THEMBA ZWANE
MBABANE- Forbes has rated Eswatini’s Lilangeni as the 8th strongest African currency for April 2026.
Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle.
In the latest rankings, Tunisia’s Dinar has been rated the strongest African currency for the month of April as it equates to 2.88 when compared to the US dollar. Second is the Libyan Dinar which equates to 6.34 to the US dollar. On third place is the Moroccan Dirham which equates to 9.25 to the US dollar.
Eswatini’s Lilangeni equates to 16.55 to the US dollar on 8th place. On 10th place is Lesotho’s Loti which equates to 16.58 to the US dollar.
Unpredictable Global Economy
According to the Business Insider Africa, in today’s unpredictable global economy, a country’s currency strength has emerged as one of the most reliable indices of economic resilience, investor confidence, and macroeconomic stability, particularly in Africa, where external shocks can spread fast into local markets.
“Currency strength is a key indicator of economic resilience and stability, especially important in Africa amidst global volatility,” reads the report.
It states that recent trends show some African currencies, like the Kenyan and Ugandan shillings, have remained stable due to factors like investor confidence and export income.
Foreign Exchange Management
The Nigerian naira has also stabilised recently thanks to capital inflows and improved foreign exchange management.
“Strong currencies benefit economies by lowering import costs, reducing inflation, and encouraging long-term investment.”
Recent events across the continent and even outside of it have highlighted the reality of Africa’s economic vulnerability, while also underscoring its strength.
Pillars of Economy
One of the pillars of the economy in question is currency strength, which in some African countries has taken a hit, while others have remained steady.
The Kenyan shilling, for example, has stayed relatively stable around 129 per dollar, aided by increased investor mood and foreign exchange inflows.
Similarly, the Ugandan shilling has remained stable within a narrow band, aided by higher export profits such as coffee income and lower FX pressures, as seen on Reuters.
Despite structural issues, the Nigerian naira has recently shown signs of stability, aided by capital inflows and improved FX liquidity management.
Stabilize Economic Strength
These instances demonstrate how relative currency strength can help to stabilize overall economic confidence.
A stronger currency provides numerous significant benefits; it lowers the cost of imports, particularly fuel, machinery, and critical products, reducing household inflation.
It also helps to stabilize company planning, allowing companies to better estimate costs and attract long-term investment.
Global Price Shocks
Currency strength is particularly important in commodity-importing economies. Without it, global price shocks soon lead to domestic inflation.
This is why nations with reasonably stable currencies frequently have more predictable price environments than their more volatile counterparts.
Furthermore, stronger currencies boost a country’s standing in global financial markets.
Promote Infrastructure Development
Investors are more likely to commit long-term resources when exchange rate concerns are reduced, decreasing borrowing costs and promoting infrastructure development.
In an era of increased capital mobility and risk sensitivity, African economies that maintain currency stability are better positioned to integrate into global trade and investment systems.
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(Courtesy Pic)
