Angola’s Currency Depreciates With Dwindling Oil Revenue

Africa’s second biggest oil producer, Angola, has not been spared the effects of the latest global economic downturn mediated by crashing oil prices on the global market. The Kwanza, Angola’s national currency, has seen its exchange rate rise as high as 335 Kwanza to the dollar as against the official rate of 155. Crude oil, Angola’s main foreign exchange earner currently trades as about $30 per barrel, from record high figures of $120 in 2014. The Kwanza was devalued by 15 percent in December 2015 to accommodate macro-economic effects of reduced government earnings from oil sales. This has also led to soaring increase in the prices of goods in markets across the country while businesses have also suffered as a result of reduced patronage. The global outlook for crude oil in 2016 remains bleak and the government will have to be creative about diversifying the country’s economy to turn the tide. Read more on the depreciation of Angola’s currency here: Angola’s currency continues its free fall