Angola's Kwanza Hits 25-Year Low Against the Dollar
The Angolan kwanza has plummeted to an all-time low, reaching a level not seen in 25 years. As of September 11, 2024, the exchange rate stood at 1,250 kwanzas to one US dollar. This significant decline is a response from the government to ongoing economic difficulties in the country, including high levels of inflation and diminishing oil export revenues.
Since the beginning of the year, the kwanza has been losing value amidst unstable market conditions and uncertainty driven by both internal and external factors. The reasons for the decline include a drop in global oil prices, which are the main source of foreign currency earnings for Angola. The government's tightened control over financial flows has not helped prevent the national currency's fall.
Analysts warn that further depreciation of the kwanza could have a detrimental effect on the economy and the living standards of the population. Rising prices for imported goods will exacerbate inflation, aggravating the issues of purchasing power for citizens. The government is seeking ways to stabilize the currency, and additional economic measures may soon be implemented.
This situation raises concerns among investors and the populace, as many people rely on the dollar as a more stable currency. The falling value of the kwanza could also worsen existing social problems in a country where a significant portion of the population lives below the poverty line.
