The creation of a committee to coordinate fiscal and monetary and exchange policy headed by the finance minister and the head of the National Bank of Angola (BNA) has been approved by order of the Angolan government, the daily Jornal de Angola reports.
The committee will comprise the Finance Ministry and the BNA as “the key operators for macroeconomic policy, specifically fiscal, monetary and foreign exchange policy” and which “must also guarantee price stability and the internal and external solvency of the country.”
Among other duties, the Angolan committee for fiscal and monetary policy coordination will be responsible for “examining and approving” proposed measures to be issued by the Finance Ministry and the BNA “concerning decisions that impact fiscal and monetary policy coordination” among the authorities.
“To approve measures that help prevent ‘dollarisation’ (the dollar continues to be used in domestic transactions in Angola) of financial assets in transactions between residents, as well as to foster financial savings and the concession of credit to the economy,” the order stipulates.
The coordination committee will also be responsible for preparing and submitting for approval by the Economy Committee of the Council of Ministers the government’s annual financial programme, among other measures.
Lower Angolan oil revenues (down more than 55 percent in the first quarter of this year compared to the same period in 2014) led the government to revise the state budget, cutting a third of all spending planned for 2015.
The entrance of foreign currency in the country is also declining. This has enhanced the dollar’s official exchange rate value by more than 10 percent in nearly six months, even more so in the parallel market. (Macauhub/AO)