Angola's currency sinks

Angola became yet another country that devalued its currency. A string of countries adopted freely floating exchange rates over the past several months, sparking sharp currency falls.

As reported by Bloomberg:

Angola’s currency fell the most since September 2001 after the central bank allowed it to devalue as the drop in oil prices cut the main source of government revenue and export earnings.

Central bank Governor Jose Pedro de Morais is trying to reduce the gap between the kwanza’s official rate and that on the black market.

"The devaluation, besides placing the kwanza in accordance with the fundamentals of economy, also has the advantage of promoting national production," Carlo Rosado de Carvalho, an economics professor at Catholic University in Luanda, said by phone. "From this point of view it makes sense to devalue."