The Angolan currency, the kwanza, suffered a depreciation of 9.18% against the euro, as a result of the new flexible exchange rate regime, according to figures released on Tuesday by the National Bank of Angola.
The central bank reported that each euro was priced, by weighted average, at 221.261 kwanzas, when previously, when the exchange rate was set, it was worth 200.939 kwanzas.
The dollar was priced at 185.513 kwanzas, against a previous rate of 166 kwanzas, or a depreciation of 10.5%.
The official exchange rate set by the BNA had been set at 166 kwanzas for each dollar and at 186 kwanzas for each euro since the first quarter of 2016.
The governor of the National Bank of Angola announced a few days ago that the central bank would set a currency band, which if it was not exceeded, would not lead to an intervention, while denying the possibility of a discrete devaluation of the kwanza.
“It will be the market that determines the exchange rate of the kwanza and the depreciation of the currency,” the governor said during a press conference to present the Macroeconomic Stabilization Programme for 2018. (macauhub)