Angolan Novo Kwanza (AON)
What Is Angolan Novo Kwanza (AON)?
The Angolan Novo Kwanza (AON) was the national currency of Angola somewhere in the range of 1990 and 1995. It was supplanted by the Kwanza reajustado (AOR) in 1995, due to serious and tenacious inflation.
The AON was just distributed utilizing paper banknotes, essentially by basically changing or reproducing the denominations of as of now given currency.
Figuring out the Angolan Novo Kwanza (AON)
Situated on the western shoreline of Southern Africa, Angola is a moderately populous country, with about 30 million occupants. It is anyway one of the world's less fortunate countries, with per-capita gross domestic product (GDP) of just $2,790 U.S. dollars (USD) in 2019. Despite the fact that Angola has a long history dating back millennia, its recent history has been fundamentally affected by the Atlantic slave trade, in which large numbers of Angolans were forced into subjection. This slave trade started during the fifteenth century and went on for about 400 years before being authoritatively annulled during the nineteenth century.
Angola pronounced independence from Portugal in 1975, following an unpleasant period in which Angola battled a war of independence while likewise becoming overwhelmed in a civil war. While Angola made its most memorable national currency as an independent nation in 1977, this currency — called the Angola Kwanza (AOK) — before long saw its value quickly dissolved by inflation. The AON, presented in 1990, was an endeavor to deal with this serious inflation, yet it too was devalued just 5 years after the fact.
This subsequent devaluation happened in 1995, when the AON was supplanted by another currency called the "kwanza reajustado". The devaluation was carried out at a rate of 1,000 new currency units for each 1 AON, mirroring the level of seriousness of Angola's inflation crisis around then. A third devaluation happened in 1999, supplanting the kwanza reajustado with the purported Second Kwanza (AOA), which is the currency that Angola keeps on utilizing today.
Real World Example of the Angolan Novo Kwanza (AON)
Sadly, the extreme inflation that provoked the previous occasions of currency devaluation in Angola has kept on being a serious problem in the country. Unemployment was 6.7% in 2020, down from 9.4% in 2010.
Similarly as with all nations, the strength of Angola's currency is situated by and large on the strength of its underlying economy. Presently, Angola's economy is vigorously dependent on commodity exports, with crude oil and petroleum products including generally 90% of total exports. Diamonds, in the mean time, contain around 5% of the total, making Angola's economy solely dependent on commodities. China is by a long shot its largest customer, purchasing practically 60% of every one of Angola's exports.
- The Angolan Novo Kwanza (AON) was a currency utilized in Angola somewhere in the range of 1990 and 1995.
- It is one of numerous currencies that the nation adopted and supplanted due to constant inflation.
- Angola's economy is one of the most fragile in the world and depends solely on raw commodity exports.