Luanda - The sustainable appreciation of the Angolan currency, Kwanza (AKZ), could occur in the next four years, due to the exponential growth in the production levels of the most consumed goods in the country, economist Augusto Fernandes considered this Monday, in Luanda.
Speaking to ANGOP, regarding the 47th anniversary of the entry into circulation of the Kwanza, replacing the colonial currency (escudo), marked this Monday (Jan 8), the specialist in economics and business management pointed out that one of the main reasons why Angola’s currency is in constant depreciation, is the fact that the country is a big importer.
This fact, he continued, puts pressure on the Kwanza and forces the country to resort to foreign currency to satisfy the needs of the domestic market, a situation that encourages inflation, devaluation and the weak families' purchasing power.
Therefore, he said, for the domestic currency to be strong and correspond to the purchasing power of families, it is necessary for the country to continue to increase domestic production, in order to respond to the demand for essential goods and services for the population.
For Augusto Fernandes, the existence of a strong currency essentially depends on the balance between national and imported goods and services.
“With the increase in national production, within the next four years, the value of the Kwanza will reverse and begin to get into an appreciation routine until it finds its balance point, which should settle between 200 and 300 kwanzas per US dollar ”, he predicted.
To this end, he highlighted, the country needs to take into account the old motto “agriculture is the base and industry the decisive factor”, always looking at the progressive process of national industrialization.
Still on the subject of Kwanza Day, university Professor Vladimir Martins considers Angola's commitment to diversifying the economy to be correct, especially since 2018, the period in which the promotion of national production began, with a view to reducing dependence on oil and gas.
The professor also recalled that Angolan families are increasingly losing purchasing power, as a result of the historic devaluation of the domestic currency, with inflated prices for basic food products.
“For 47 years after the replacement of the Portuguese “escudo” for the Kwanza, the purchasing power of citizens has been suffering constant setbacks, due to several internal and external shocks, mainly the global economic and financial crisis and war conflicts spread around the world”, he reminded.
Vladimir Martins also pointed out the high dependence on oil exports, excessive imports of raw materials and essential food goods as the main causes for the devaluation of the Angolan currency.
About the Currecny
The KWANZA as a currency for commercial and foreign exchange operations has been in force since 1977, through Law No. 71-A/76 of 11 November (National Currency Law), which crossed out the colonial currency.
Currently, the 2020 series is in force in plastic bills, as well as incoins, with the highest face value being the AKz 5,000 paper bill and the smallest being five kwanzas (metallic).
This family of national currency officially circulates in the country, denominations of 200, 500, 1000, 2000 and 5000 kwanzas, illustrating the natural wonders of the country and the face of the Angola first President, Dr. António Agostinho Neto.
The 200 kwanza bill features the Pungo a Ndongo black stones (Malanje Province), the 500 bill features the Tundavala Gap (Huíla Province), the 1000 bill has the Luvili mount n the Central Plateau (Huambo Province), the 2,000 bill brings the Serra da Leba mountain range (Namibe Province) and the 5,000 ruins of the Cathedral of Saint Saviour of the Congo (Zaire Province).
Plastic banknotes, due to their non-fibrous nature and their coating with transparent varnish, are more resistant than paper banknotes, particularly in terms of handling, dirt, among others, resulting in an extension of their useful life.
The first banknotes were issued in 1977 by the National Reserve Bank of Angola (BNA).
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