National Bank of Angola increases sale of dollars to commercial banks

10 June 2015

Over the last week the National Bank of Angola (BNA) has increased the amount of foreign currency sold to Angolan commercial banks by over 134 percent to US$936 million, according to a weekly report on developments in the BNA’s money and foreign exchange markets.

The measure is in line with the announcement made on 28 May last by the governor of the BNA, José Pedro de Morais, on increasing the number of weekly auctions of foreign currency to commercial banks, one of the measures proposed by the government to “decompress” the current currency crisis in Angola.

Sales of currencies between 1 and 6 June were carried out at an average rate of interbank foreign exchange of 117.473 kwanzas per dollar, which corresponds to a weekly devaluation of the kwanza of about 6 percent.

The sale of foreign currency to the Angolan banking sector in the first week of June is at a one-year high, compared to the US$400 million sold by BNA in the previous week, which itself was a week-on-week increase of 30 percent.

At the end of May the governor noted that the 30 percent drop in the sale of foreign currency to commercial banks by the BNA since the beginning of the year, compared to 2014, due to the fall in oil export revenues, was affecting business activities in the country.

“The BNA has been given a mandate to take the necessary steps to decompress the pressure in the forex market, to avoid situations of disruptions of ‘stock’, to solve some problems that are seriously affecting economic operators,” said Morais. (macauhub/AO)