Hyperinflation/Archive

Cases / Wars in Africa / Angola

Angola
1991–1999

During the civil war between the MPLA government and UNITA, and with an economy living on oil, the state paid for the war with the central bank.

84.1%prices in the worst monthMay 1996
34.5 daysfor prices to doubleat the peak (Hanke & Krus)
Dec 1994 – Jan 1997above 50% a monththe hyperinflation itself
1banknotes in the collectionKwanza

Currency reform: 1 kwanza = 1,000,000,000 novos kwanzas · Cause: Civil war, a deficit paid by the central bank · Resolution: Two redenominations; the war ended in 2002

In short

The kwanza was reformed three times in a decade. Hyperinflation in the strict sense ran from December 1994 to January 1997. It peaked at 84.1 % in May 1996, doubling every 34.5 days (H&K).

The curve

No exchange-rate chart for this case yet: no series we could source month by month. The figures that matter are in the text and the key figures below, each with its source.

What happened

The events in order, with the banknotes at the date on them.

25 Sep 1990
The novo kwanza; people may exchange only 5 % of their old notes, so most savings are wiped out at a stroke.
1991
A 500,000-kwanza note.
dated
4 Feb 1991
500,000 kwanzas (4 Feb 1991)
500,000 kwanzas (4 Feb 1991)
Dec 1994
Monthly inflation passes 50 % (H&K start).
1 Jul 1995
The kwanza reajustado (1,000 : 1).
May 1996
The peak, 84.1 % (H&K).
Jan 1997
The H&K episode ends.
1 Dec 1999
The kwanza (1,000,000 : 1).
2002
The war ends.

Context: why it happened

  • War. The civil war (1975–2002) resumed after the 1992 election.

Consequences & lessons

  • A currency reform that confiscates (only 5 % exchangeable) destroys trust in the next one.

The banknotes

500,000 kwanzas (4 Feb 1991)
500,000 kwanzas (4 Feb 1991)

The data

figurevaluesource
Hyperinflation (≥ 50%/month)Dec 1994 – Jan 1997H&K
Peak monthMay 1996H&K
Peak monthly inflation84.1 %H&K
Doubling time at peak34.5 daysH&K
Novo kwanza25 Sep 1990, at par, but only 5 % of old notes could be exchangedWikipedia (Angolan kwanza)
Kwanza reajustado1 Jul 1995, 1 = 1,000 novos kwanzasWikipedia (Angolan kwanza)
Kwanza (AOA)1 Dec 1999, 1 = 1,000,000 reajustadosWikipedia (Angolan kwanza)
Largest notes500,000 kwanzas (1991) · 5,000,000 kwanzas reajustadosWikipedia (Angolan kwanza)
Case data (JSON)Banknotes (ZIP)
Cite this case
“Angola 1991–1999”, Hyperinflation Archive, hyperinflation.rogzy.org/angola-1991-1999/ (2026). Figures: Hanke & Krus (2012) and the sources listed below.

Sources

  1. Hanke & Krus (2012) — episode, peak, doubling time.
  2. Wikipedia, "Angolan kwanza" (read 2026-10-05): https://en.wikipedia.org/wiki/Angolan_kwanza

H&K = Hanke, S. H. & Krus, N. (2012), World Hyperinflations, Cato Institute Working Paper no. 8.