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

Country	Official Rate (August 2021)	Official Rate (August 2022)
Nigeria	411.8059	426.2514
South Africa	14.6590	16.8507
Egypt	15.6990	19.2085
Algeria	135.1169	140.3630
Morocco	8.9567	10.5667
Kenya	109.8494	120.0531
Ethiopia	45.6530	52.7895
Ghana	6.0402	9.9779
Angola	634.6168	428.9175
Tanzania	2319.30	2330.99

British Pounds

Country	Official Rate (August 2021)	Official Rate (August 2022)
Nigeria	566.5981	499.6411
South Africa	20.1691	19.7520
Egypt	21.6001	22.5157
Algeria	185.9055	164.5300
Morocco	12.3234	12.3860
Kenya	151.1403	140.7233
Ethiopia	62.8133	61.8785
Ghana	8.3106	11.6958
Angola	873.1604	502.7662
Tanzania	3190.39	2698.55

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

Topic: Exchange Rates

Exchange Rates in Leading African Countries as of December

Exchange Rates in Leading African Countries - July 2022

Exchange Rates in Leading African Countries as of August 2022