With prices reaching $116 per barrel as of March 23, oil-dependent countries like Angola, which generates 90% of its export revenue from crude oil, have seen their national currencies soar.

The Angolan kwanza has risen by 20% in 2022 alone, owing to a combination of robustbarrel prices, forecast positive economic growth, and rising interest rates from the Central Bank that reached a record 20% last July.

In addition, Angola’s credit rating has been upgraded several times in the last year, following its completion of a three-year, $4.5-billion program with the IMF aimed at stabilizing the economy, controlling inflation and safeguarding financial stability.

“We have been witnessing an increase in confidence in the currency, generating considerable gains for the kwanza,” stated Jose de Lima Massano, Governor of the National Bank of Angola. “International reserves are solid, covering about 11 months of imports, the balance of payments shows surpluses and we are beginning to see a gradual reduction in the monthly rate of inflation.”