National Bank of Angola sells US$2.219 billion to commercial banks in June

4 August 2015

The National Bank of Angola (BNA) sold US$2.219 billion in foreign currency to commercial banks in June, 15.28 percent less than the US$2.620 billion sold in June 2014, Angola’s central bank indicated on Tuesday in Luanda.

Those sales comprised US$1.094 billion based on price auctions and US$1.125 billion via sales directed to specific sectors and priority operations.

Besides currency obtained from the BNA, the banks bought US$208 million from their respective clients in June, significantly over a billion dollars less than the figure of US$1.240 billion in the same month of 2014.

Overall, the commercial banks foreign currency purchases from the BNA and their respective clients in June 2015 amounted to 37 percent less than in June 2014.

The BNA also indicated that last June US$594 million of the total US$1.125 billion of directed sales were used to reposition the banks’ foreign exchange position, given problems meeting their commitments to external correspondents due to operations associated to credit cards and international payment cards.

Directed sales of foreign currency to the banks result from the BNA’s need to take responsibility for intervening in the market to fulfil operations deemed priorities by the government. This is done in a context of reduced foreign exchange availabilities and high risk of foreign exchange market imbalance, lower food and raw material reserves and eventual paralysation of essential services enabling the economy to function.

Directed foreign currency sales were also carried out in June for merchandise operations (food and other), reinsurance services, oil sector service providers, state bodies, telecommunications, communication services, study grants and many other priorities. (Macauhub/AO)