"Last week was marked by the continued depreciation of the kwanza against the dollar and against the euro", write the BFA analysts in their weekly commentary on market developments, pointing to falls of 9.87 percent against the dollar and 9.95 percent against the euro.
The kwanza ended last week at 660.6 kwanzas per dollar and 711.4 kwanzas per euro, and the BFA says that "the pace of decline of the kwanza does not seem to be slowing down".
"In our perspective, the Angolan currency should appreciate again in the medium term, correcting part of the movement that has occurred in recent weeks", conclude the analysts.
The reduction in oil production and prices had an impact on the Angolan public accounts, which are still heavily dependent on the evolution of crude oil despite efforts to diversify the economy.
"The decline in the price is negatively affecting not only the exchange rate, but also Angola's budgetary and commercial results," said the African department of consultancy Oxford Economics last week, recalling the 27.1 percent drop in the trade surplus in the first four months of the year, compared to the previous four months, and the 33 percent reduction in revenues in the first quarter compared to the last three months of 2022.
