Revaluation Of The Kwanza

In a sudden, but not entirely unanticipated move, the Angolan monetary authorities have revalued the kwanza, jerking the unit up some 6% to AOA75.30/US$ from previous trading in the AOA80.00/US$ region. The rationale behind the intervention is encapsulated in the 'hard kwanza policy', introduced in 2003, which aims to suppress inflation. Consumer prices averaged 11.7% last year, and the central bank aims to bring the rate down to a 8.0-10.0% target band in 2007.

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