Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Opinions Blurb

Here Is What Happened When Angola Devalued

Nairametrics by Nairametrics
January 4, 2016
in Blurb
Here Is What Happened When Angola Devalued

Logo of Angolan Central Bank Nairametrics File

Share on FacebookShare on TwitterShare on Linkedin

Angola devalued its official currency the Kwanza at the end of 2015 in a bid to bridge the gap between the official rate and parallel market rate. By January 4th, the Kwanza had lost as much as 17% representing its biggest drop since September 2011 according to Bloomberg. The currency traded at 134.573 Kwanza to the dollar on Dec. 31 compared to 154.835 Kwanza against the dollar as at January 4th 2016. The exchange rate had actually dropped to as low as 158.7380 Kwanza to the dollar before clawing back.  The currency is now officially down 50% since January 2015.

Despite the devaluation, the disparity between the parallel market rate and the official rate was as clear as night and day. The currency was trading at between 270 and 280 per dollar at the black market. The country just like Nigeria, is facing a currency crisis following the 65% drop in the price of crude and the threat of Iran coming back to the crude market.

The Central Bank of Nigeria has also come under pressure from economist seeking that it devalues the currency in response to the widening disparity between the black market and the interbank rates. This is despite the CBN devaluing twice within a space of 12 months by about 21%. Some have also called for the CBN to float the currency instead opining that it better serves the economy and gives the naira an opportunity to discover its real price.

RelatedPosts

LinkedIn Local Lagos set to hold the third edition

Atiku pledges to give states power to generate, transmit and distribute electricity if elected president

The situation in Angola is perhaps an indication of how brutal devaluation can be on one hand and how it is not in any way a solution to any country’s currency crisis. The country night now have to devalue by another 26% if it is to be at par with the black market rate. Just like Nigeria, African countries face a dollar scarcity due to the drop in oil revenue and have adopted several policies aimed at controlling demand. Nigeria’s CBN has made it clear that it will not be devaluing its currency and will continue with its demand side management policies of restricting dollar purchases.

Related

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • LinkedIn Local Lagos set to hold the third edition
    • Atiku pledges to give states power to generate, transmit and distribute electricity if elected president
    • FG asks Google to remove Maxi Credit, Here4U, ChaCha, SoftPay loan apps from Play Store

    Follow us on social media:

    Recent News

    LinkedIn Local Lagos set to hold the third edition

    LinkedIn Local Lagos set to hold the third edition

    August 19, 2022
    Atiku pledges recruitment of more security personnel, provide adequate equipment if elected

    Atiku pledges to give states power to generate, transmit and distribute electricity if elected president

    August 19, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com