INtheKNOW
ANGOLA KWANZA IS NOW WORLD’S BEST-PERFORMING CURRENCY THE OIL BOOM HAS ADDED FUEL TO A RALLY FOR ANGOLA’S KWANZA THAT’S MADE IT THE WORLD’S BEST-PERFORMING CURRENCY AGAINST THE DOLLAR.
T
he currency of Africa’s second-
Also read: Angola reaffirms commitment to
biggest crude producer has
economic diplomacy
strengthened 20% this year,
buoyed by surging oil prices, several
In July, Angola’s central bank increased its benchmark interest rate to a record 20%
credit-rating upgrades and the likelihood
from 15.5% to curb inflation. The kwanza is
the central bank will continue to raise inter-
also recovering from a sharp drop in 2019
est rates.
after the central bank started allowing the
The worst-performing currency is the Russian ruble, down 37% this year amid
currency to trade more freely against the dollar.
sanctions against Russia after its invasion
S&P increased the country’s credit rating
of Ukraine.
on Feb. 4, while Fitch Ratings upgraded the
Brent crude almost doubled in the past year to as high as $139 a barrel earlier this
southern African nation’s debt last month. In September, Moodys Investors Service raised Angola’s credit rating for the first
month. Brent futures fell below $100 on
time, citing improved governance and debt
Tuesday, still up 28% since the beginning
metrics.
of January.
The rating upgrades took place after
Angola’s economy, which depends on
Angola last year completed its $4.5-billion
oil for 90% of export revenue, is forecast
program with the IMF, in which it allowed
to expand 2.9% this year after exiting five
the kwanza to trade freely against the
years of recession in 2021. The central bank
dollar.
may increase rates this month to rein in
Angola is an AfCFTA member country
rising consumer prices, S&P Global ratings credit analyst Zahabia Gupta said on Feb. 18.
36
VOL 22
ISSUE 3
BY MARK-ANTHONY JOHNSON
CEO GLOBAL MAGAZINE.COM
