Luanda - The depreciation of the national currency (Kwanza) could reduce from 40%, registered in 2023, to 3% throughout this year, a fact that will imply having a stable exchange rate and, consequently, a significant appreciation on Angolan currency, against the US dollar and the euro.
This perspective was demonstrated yesterday, Thursday, in Luanda, by the chief economist of Standard Bank for Angola, Mozambique and the Democratic Republic of Congo (DRC), Fáusio Mussá, who predicts a relatively stable Angolan foreign exchange market during this year, compared to last year.
The expert, who spoke during the first edition of the Economic Briefing/2024, which had as theme “Angola's macroeconomic situation”, clarified that the fact that the exchange rate is expected to be stable “will not imply normality in the functioning of the market exchange rate”, due to the ongoing shortage of foreign exchange.
Currently, one (1) dollar is worth around 840 kwanzas, while one euro is equivalent to 902 kwanzas, which shows that the appreciation of the national currency still remains below expectations, compared to the foreign currency.
Faced with this situation, the economist suggests that the Angolan Government continue to carry out effective macroeconomic reforms, with emphasis on reducing fuel subsidies, which must be done through “good communication to citizens”, aiming to lower the current inflation rate in the country.
For Fáusio Mussá, when reducing or removing fuel subsidies, it is essential to transmit this information with the greatest possible transparency to people, showing the population the real gains of this measure.
He recalled that inflation stood at 24% nationally and 33% in Luanda, last February, predicting an inflation rate of 28% in July this year.
In the fiscal domain, the source considered the existing assumptions in the General State Budget/2024 as sufficient and robust to generate some consolidation that could reduce debt and in a certain way mobilize resources to support the economy.
Standard Bank is a South African bank specialized in evaluating macroeconomic indicators that operates in 38 countries, 18 of which are in Africa. This institution was a branch of the United Kingdom International Bank | Standard Bank.
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