Exchange Rates in Leading African Countries as of August 2022

An exchange rate is a price at which one currency can be exchanged for another between individuals, nations, or economic zones. It is used to determine the value of various currencies in relation to each other and is vital in determining trade and capital flow dynamics. Exchange rates fluctuate from time to time and can either be free-floating or fixed.

According to Investopedia, A fixed or pegged rate is a rate the government (central bank) sets and maintains as the official exchange rate. For example, countries like Argentina, Bulgaria and Hong Kong are examples of countries that operate with fixed exchange rates. 

In contrast, a floating exchange rate is where market forces (supply and demand) determine the currency exchange rate. Exchange rates may fluctuate for various reasons, such as inflation, monetary policies, trade, and capital flows.

In August 2022, almost all (except Angola) the leading African countries recorded depreciation in their official exchange rates against the dollar (year-on-year). However, most countries recorded appreciation against pounds. The major driver of dollar strengthening can be attributable to yet another disruption to the European gas market as Russia announced an extension to the shutdown of the Nord Stream pipeline. 

Currency market intervention has been an essential part of the policy toolkit for central banks in sub-Saharan Africa. Below is a list of the leading African countries by GDP and their various bank exchange rates at the end of August 2022.

US Dollars

British Pounds

Notes: Mustard Insights sourced all rates from official sources in the leading African Countries.