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Angola Drops Currency Trading Band, Weakening Kwanza

  • Kwanza slumps to record versus dollar, down 17% this month
  • IMF has urged Angola to allow its currency to trade freely
General Views And Economy In Angola's Capital City
Photographer: Simon Dawson

Angola’s central bank stopped using a trading band that kept the kwanza’s value within a fixed range, accelerating the currency’s slump, according to two people familiar with the matter.

The central bank of Africa’s second-largest oil producer last year introduced a rule that wouldn’t allow the kwanza to move more than 2% at currency auctions. It started allowing the currency to trade more freely at some auctions this month, said the people, who asked not to be identified because they are not allowed to speak to the media.