Central banks of Angola and Namibia sign currency conversion agreement

19 September 2014

The central banks of Angola and Namibia are due next Monday to sign a two-way currency conversion agreement to facilitate and provide greater security for commercial transactions between the two countries, according to the National Bank of Angola.

In a statement the bank said that the agreement to be signed in Santa Clara, Cunene province, will allow direct exchange between Kwanzas and Namibia dollars in banks, bureau de change or other authorised agents in each country, with the central banks responsible for publishing the daily benchmark exchange rate.

Following the agreement small transactions will no longer need to be carried out using currencies that are not issued by the Angolan and Namibian central banks as well as making trade easier.

The agreement establishes the rules of movement and acceptance of cash issued by each of the central banks, through authorised foreign exchange agents, adoption of benchmark exchange rates, terms of repatriation of currency and the method of net compensation between currencies.

The National Bank of Angola said that the agreement, which is important to reduce citizens’ currency exposure, contributes to an increase in business between the two countries and ensures transparent and efficient currency market transactions for authorised agents. (macauhub / AO)