Africa’s petrocurrencies have been hit by low oil prices, plaguing economies of Angola, Nigeria, and Algeria, most notably, Quartz reported.
Angola’s economy is in a rough spot, and its currency just hit a record low against the US dollar following its latest devaluation, Bloomberg reported. 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. The kwanza slid as much as 17% to an all-time low.
In recent months, Nigeria has launched increasingly strict capital controls that affect everything from imports to bank cards in a bid to control its shrinking pile of foreign reserves, The World Economic Forum published. Amid the latest developments in the market, Algeria is looking at reducing some subsidies to withstand emerging economic difficulties, in line with a global trend of cutting fuel subsidies among oil major countries.