Angola Exchange Rate March 2020

Angola: Kwanza dives in March as oil prices sink to 17-year low

The Angolan kwanza plunged against the U.S. dollar in mid-March against the backdrop of crashing global crude oil prices and as the increasing economic fallout from the coronavirus pandemic fuels fears of an impending global recession. On 20 March, the kwanza ended the day at 518.4 per USD, depreciating 5.7% over the same day in February. Furthermore, the currency was 7.6% lower on a year-to-date basis and was down 39.0% in year-on-year terms.

Rapidly deteriorating external dynamics have weighed heavily on the kwanza in recent weeks. The Angolan Cabinda crude oil price sunk to a near 17-year low of USD 24.2 pb on 18 March owing to plummeting global oil demand amid a coronavirus-related downturn in economic activity and soaring global oil supply due to the ongoing price war between Saudi Arabia and Russia. Sliding oil revenues—oil accounts for the lion’s share of Angolan exports—dented foreign currency supply in Angola and sparked fears of a severe economic recession in the months ahead, thus placing marked downward pressure on the kwanza.

Severe economic turbulence is expected in the months ahead as the fast-spreading Covid-19 increasingly weighs on domestic and external economic activity, thus keeping global crude prices subdued. The authorities seem to have few options left to support the currency as its foreign currency reserves come under strain and the Central Bank’s interest rates remains among of the highest in the region.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest