/ 28 June 1999

ANGOLA MOVES TO SINGLE CURRENCY

THE Angolan government’s recent decision to scrap the dual currency exchange rate system has not had a major impact on the lives of ordinary people, analysts in Luanda said on Wednesday. Analysts said the move may stabilise the economy in the long run, but commodity prices remain extremely high. Over the past decade the government has been forced to switch from the original Kwanza to the “new kwanza” and lately to the “adjusted kwanza” in an effort to prop up the currency that has been battered by 24 years of civil war. Meanwhile, the abolition of the dual currency rates has met with approval from international financial institutions. Last week the World Bank announced that Angola had stabilised the servicing of its debt to the bank. Barbara Kafka, the Bank’s director for Angola, was quoted on Angolan TV as saying she was pleased with the economic reforms introduced by the government, which, she said, will enable the Bank to make new investments in the country.