Angolan commercial banks have been required, since Wednesday, to set aside national currency reserves at the National Bank of Angola (BNA) equivalent to 25 percent of customer deposits, said Thursday in Luanda the governor of the central bank.

The ratio of required reserves in national currency since 2014 had been set at 12.5 percent, and on 1 January the BNA increased the rate to 15 percent, justifying the decision with the need to “ensure price stability,” precisely at the peak of the crisis brought on by a drop in international oil prices, which is affecting the Angolan economy.

BNA data showed that last April Angola had 480.359 billion kwanzas (US$3.9 billion) in reserve requirements in domestic currency and 272.318 billion kwanzas (US$2.2 billion) in foreign currency.

“In a second stage we will adjust interest rates on savings deposits in commercial banks, encouraging demand for domestic currency. If demand for domestic currency increases, this will reduce demand for foreign currency and also reduce pressure on the exchange rate,” said central bank governor Jose Pedro de Morais.

The governor of the BNA also committed to keeping foreign reserves at a level equivalent of over six months of imports. (macauhub/AO)