"At Fitch Solutions, we anticipate the kwanza will depreciate more moderately in the first half of this year when compared to last year, given the increase in oil exports and the improvement in the commercial environment," wrote the analysts.
In a commentary on the evolution of Angola's currency, sent to investors and to which Lusa had access, analysts of this consultancy held by the same owners of financial rating agency Fitch Ratings considered that "investors' concerns about Angola's fragile fiscal position will keep demand for kwanzas low in the short term.
The increase in exports and the rise in domestic interest rates will maintain downward pressure on the kwanza, which will be less pronounced in the second half of this year and in 2022, wrote the analysts.
Fitch Solutions forecast points to 581.5 kwanzas per dollar in 2020 to an average of 662.99 this year and 680.44 in 2022.
Analysts also said that "a significant resumption of Foreign Direct Investment (FDI) is unlikely to happen in the next two years, as ongoing reforms to improve the business environment take time to deliver results.
FDI in Angola fell from US$16.2 billion in 2015 to 8.1 billion dollars in 2019, analysts noted in the report, made available to investors the same week that the United Nations Conference on Trade and Development (UNCTAD) said investments in Africa fell 18 percent last year.
