Angola’s currency continues to lose value against major currencies

12 April 2018

Angola’s currency – the kwanza – continues to depreciate against major currencies, having lost more 0.387% of its value against the euro on Tuesday, following an auction of 50 million euros by the National Bank of Angola, according to information from the central bank.

The 50 million euros sold by the National Bank of Angola to guarantee the import of raw materials and the payment of services to cover operations of small and medium-sized companies were purchased by 17 of the 25 participants at a weighted average rate of 268.462 kwanzas.

As a result of this auction, the dollar was exchanged at a rate of 217.487 kwanzas for sale and 216.608 kwanzas for purchase.

In the previous auction, the National Bank of Angola sold 100 million euros to the primary market to ensure the import of equipment and parts and accessories, and an average weighted exchange rate of 267.428 kwanzas per euro was calculated.

Financial news agency Bloomberg reported that the kwanza is the currency from all countries dependent on oil exports, except Venezuela, to have lost the most value against the dollar since June 2014, when a barrel of Brent oil reached a maximum price of US$115.

Following depreciations recorded since January, when the Angolan central bank allowed the market to set the exchange rate, the kwanza has lost 55% of its value against the dollar, according to Bloomberg. (macauhub)