Angolan central bank refuses to de-value the kwanza and expects “positive” end to the year

19 August 2009

Luanda, Angola, 19 Aug – Angola’s central bank, Banco Nacional de Angola is able to maintain the country’s kwanza currency at its current value, without having to de-value it as it is expected to recover by the end of the year, the deputy-governor of the central bank said Tuesday in Luanda.

“We all know that there has been a steep fall in our revenues, a reduction of our reserves, but we are also able to stabilise the currency at current levels,” said deputy governor Ricardo Viegas Abreu on Angola’s Rádio Nacional radio station.

“We are taking some measures to stabilise the situation and we believe we will have a more positive year’s end,” he added.

The fall in the price of oil, exports of which account for almost 90 percent of Angolan revenues, led to a 30 percent drop in Angola’s foreign reserves, to US$12 billion.

In response, the BNA restricted transactions in dollars, increasing demand for US currency.

In April the BNA de-valued the kwanza by 4 percent, to 78 kwanzas to the dollar, which is significantly lower than the value of US currency on the black market, which stands at around 92 kwanzas. (macauhub)