Angolan Kwanza

AOA - Angolan Kwanza

Angolan Kwanza (AOA) is the official currency of Angola. Its symbol is Kz, ISO 4217 code is AOA. Currently, the circulating denominations of coins and banknotes in Angola include: 1, 5, 10, 200, 500, 1,000, 2,000, and 5,000 kwanzas. The unit of the Angolan Kwanza is Centimos, with 1 Angolan Kwanza equals 100 Centimos.

  • National flag:

  • Currency name: AOA - Kwanza Angola

  • Currency symbol: Kz

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Introduction to Angolan Kwanza AOA

The Angolan Kwanza is the official currency of Angola under the management of National Bank of Angola - Banco Nacional de Angola, represented by the symbol Kz. Its name is derived from the Kwanza River. The Angolan Kwanza was officially introduced after Angola’s declaration of independence.

One Angolan Kwanza is equal to 100 Centimos. However, since 2012, the Centimos have gradually been phased out, and by 2015, they officially lost their value due to their small denomination and inflation.

Since 1977, there have been 4 versions of kwanza circulated in Angola. The Kwanza is issued in both coin and banknote forms, with various denominations available for everyday transactions.

History of Angolan Kwanza

Before Angola’s declaration of independence, the Escudo was the currency of Angola during the periods of 1914-1928 and again from 1958 to 1977.

Since gaining independence, Angola has used four different currencies, all named “Kwanza”:

  • 1977 – 1990: The first Kwanza (ISO code: AOK) was officially introduced in 1977 to replace the Angolan Escudo at a rate of 1 Kwanza = 1 Escudo. In this period, the Angolan Kwanza coins all came in composition of copper-nickel with different diameter and thickness.

  • 1990 – 1995: The Novo Kwanza (ISO code: AON) replaced the first Kwanza at a rate of 1 Novo Kwanza = 1 Kwanza. Only about 5% of the first Kwanza was exchanged for the Novo Kwanza; the remainder had to be converted into government securities. This period witnessed high inflation with the Novo Kwanza.

  • 1995 – 1999: The Kwanza Reajustado (ISO code: AOR) replaced the Novo Kwanza, with a conversion rate of 1 Kwanza Reajustado = 1,000 Novos Kwanzas. At this point, no coins were issued and inflation continued.

  • 1999 to Present: The current Kwanza (ISO code: AOA) has been in use since 1999, with a conversion rate of 1 Kwanza = 1,000,000 Kwanza Reajustados. The central bank reintroduced coins into the monetary system. Despite the high inflation in early years, the currency’s value stabilized until 2016. Between May and June 2023, Angolan Kwanza suffered from a devaluation of nearly 40% against the US dollar, hitting a record low of 825 kwanzas to 1 US dollar.

Angolan Kwanza denominations

The denominations of the Angolan Kwanza (AOA) currently in circulation include:

  • Coins: 1, 2, 5, 10, 20, and 50 kwanzas. 

  • Banknotes: 1, 5, 10, 50, 100, 200, 500, 1,000, 2,000, and 5,000 kwanzas

The value of the Angolan Kwanza

The value of the Angolan Kwanza (AOA) is determined by a range of economic and political factors. As a fiat currency, the Kwanza's worth relies on public confidence and the overall stability of the economy, rather than being tied to a certain quantity of gold or fixed assets. This system allows the Central Bank of Angola to easily adjust the money supply and implement flexible monetary policies in prompt response to economic shifts.

Exchange rate history of Angolan Kwanza (KZ to USD)

  • Before 2018, Angola either imposed a fixed exchange rate regime or a managed floating one.

  • Since 2018, Angola has transitioned to a free-floating exchange rate system, allowing the value of the Kwanza to be determined by supply and demand in the foreign exchange market.

  • Currently, USD/AOA exchange rate experienced drastic changes as a result of changes in oil prices and the global economic situation.

Factors indicating Angolan Kwanza’s value

There are several factors influencing the value of the Angolan Kwanza (AOA) as follows:

  • Oil Prices: As one of the largest oil producers in Africa, Angola relies heavily on oil prices which significantly impact the economy and the value of the Kwanza. When oil prices rise, export revenues increase, contributing to improved financial conditions and strengthening the Kwanza's value.

  • Monetary Policy: Decisions made by the Central Bank of Angola, including adjustments to interest rates and money supply policies, can directly affect the value of the Kwanza.

  • Global Economic Conditions: Fluctuations in the global economy, including financial crises, can also impact the Kwanza's value. If the global economy struggles, demand for Angola's export goods may decrease, influencing the national currency's value.

  • Political Stability: The political stability and economic policies of the Angolan government can impact the confidence of both investors and the public. When political instability occurs, it may result in a decline in the value of the Kwanza.

  • Inflation: The level of inflation in Angola affects the purchasing power of the Kwanza Angola. High inflation reduces the real value of the Kwanza, causing people to need more Kwanza to buy the same amount of goods.

  • Capital Flows: The inflow or outflow of foreign investment can also influence the value of the Kwanza. An increase in foreign investment in Angola boosts demand for the Kwanza, hence a rise in its value.

  • Trade Balance: The trade balance, which is the difference between the value of exported and imported goods, also impacts the Kwanza's value. A positive trade balance (more exports than imports) can lead to an increase in the currency's value.

All the aforementioned factors can interact with one another, causing fluctuations in the value of the Angolan Kwanza and impacting the economic and social life in Angola.

Angolan Kwanza - Stats

Name
Angolan Kwanza
Symbol
Kz
Minor unit
2
Minor unit symbol
centimo
Top AOA conversion
AOA to EUR

Angolan Kwanza - Profile

Coins
centimo10 , centimo50 , centimo100
Bank notes
Kz50 , Kz100 , Kz200 , Kz500 , Kz1000 , Kz2000 , Kz5000
Users
Angola

Frequently asked questions about Angolan Kwanza

Live Currency Rates

CurrencyRateChange
AOA/USD
0.00109
AOA/EUR
0.00102
AOA/GBP
0.00084
AOA/EUR
0.00102
AOA/CAD
0.00152
AOA/AUD
0.00166
AOA/JPY
0.16729
AOA/INR
0.09247