The U.S. dollar on Friday reached a new low against the Euro and a 26-year-low against the British pound. The dollar is pathetically worth only 50 pence. In the face of the dollar’s decided decline, African currencies have held their ground, with South Africa, Uganda, Zambia and some others posting impressive gains. With the dollar steadily dropping, a few African currencies are starting to look like “safe havens.” Why not by Ugandan shillings or South African rand as a hedge against further weakness in the dollar? If only I had done so on my last visit to Uganda, I would be sitting pretty in advance of my next trip. Who knew, amid talk of African economic marginalization and extreme poverty, that the soaring currencies of some countries in the region would make this American envious.
Jul 14 2007
Comments Off on Africa’s strong currencies: who knew?