“The currencies of African oil countries are diverging. Africa's two largest oil producers have suffered similar losses in their currencies this year as fuel price fluctuations have reduced foreign exchange inflows. The Angolan kwanza is down about 30% against the dollar since the beginning of the year, reflecting the drop in the Naira in the parallel market

However, the prospects of the two currencies look to be divergent as the pressure exerted on Angola by increased debt service costs increases,” the publication reads. According to Fitch, adds the same source, the level of Angolan public debt is heading towards 129% of GDP or 850% of state revenue

The rating agency downgraded Angola from B- to CCC on Friday. While Angola may turn to multilateral lenders and its sovereign wealth fund to meet its obligations this year, we expect sustained pressure on Kwanza while falling reserves weaken confidence

According to Aza Finance, the rally in the Naira triggered by the resumption of dollar sales by exchange offices and speculators are reducing dollar positions ended this week, with dollar sales by BDCs insufficient to meet demand.

“The market fell to 445 per dollar on the parallel market from 440 last week. BDCs still have a huge backlog on their foreign exchange obligations, which will continue to put pressure on the naira in the coming days, as will the economic context of falling revenues and oil reserves,”

Aza Finance reveals that the Rand lost nearly 2% against the dollar, from 16.62 to 16.97, after South Africa's second-quarter GDP crashed by 51% in the second quarter.

As for the Kenyan Shilling, Aza Finance notes that it fell slightly against the dollar to 108.55 due to strong demand for dollars in the energy sector.