(Ecofin Agency) - The Angolese Kwanza on January 4, 2016, lost 17% to the US dollar. This is the greatest devaluation recorded by the currency since September 2001.

Following the oil price slump that occurred in 2015, Angola’s main source of budget revenues and foreign exchange currency considerably decreased. As a result of this, the country’s central bank decided to let the currency devaluate and this resulted in the 17% drop to 158.73 kwanzas to the dollar. It should be recalled that the Angolese currency had over the past year lost up to 24% to the dollar.

Just like Angola, many other African countries are going down the slope due to the fall in prices of crude. Indeed, the Nigerian market started the year with a drop of its main index (NSE 30). Investors now attentively follow the government’s choices regarding monetary policies to adopt. Some experts in fact believe that these could include Naira’s devaluation.

South Africa is another nation which also has to face a drop of its currency, the Rand, as a result of the decrease in mining raw materials from which it derives most of its revenues.

Idriss Linge