Angola imposes stricter currency curbs to stem Kwanza decline

In an effort to prevent further depreciation of the kwanza, Angola's central bank is implementing stricter regulations on foreign-exchange trading. The country, as Africa's second-largest oil producer, is grappling with a shortage of US dollars.

Reports from Bloomberg indicate that commercial banks in Angola are facing restrictions on their ability to purchase dollars through electronic trading systems within a specified range. These restrictions have been tightening over recent weeks, according to anonymous sources who are not authorized to speak to the media.

In October, the World Bank labeled the kwanza as one of the "worst-performing currencies" in Africa for 2023, alongside the Nigerian naira, both having depreciated by nearly 40%. The Bank's Africa's Pulse report pointed out that the decision of the Central Bank of Nigeria (CBN) to remove trading restrictions on the official market weakened the naira. Furthermore, the report noted that the kwanza's decline was exacerbated because Angola's central bank ceased defending the currency.