Angola: Angolan central bank de-values local currency against US dollar

17 April 2009

Luanda, Angola, 17 April – The National Bank of Angola has de-valued the country’s currency, the kwanza, by over 5 percent, a bank source cited by financial news agency Bloomberg said Thursday.

The exchange rate was changed to 79 kwanzas for every dollar after an opening rate of 75 kwanzas to the dollar, the source cited by the agency said.

In March the Angolan government reduced its expenditure included in the State Budget for this year by US$11 billion, follow the sharp fall in oil prices which, after a maximum of US$147.27 per barrel in July 2008, Thursday in New York stood at US$49.29.

In February, the Standard Bank forecast that Angola could be forced to de-value its currency to at least 85 kwanzas per dollar in order to avoid having to use its reserves in teh wake of falling oil prices.

The previous governor of the central bank, Amadeu Maurício, said in March that teh bank would not de-value the kwanza “deliberately.”

However, Maurício stood down from the role earlier this month and was replaced by Abraão Gourgel.

On Thursday the National Bank of Angola issued Treasury Bonds to the value of 42.4 billion kwanzas, or US$560 million, of a total US$9 billion to be issued this year. (macauhub)