Angola plans to negotiate external payments in kwanzas

23 September 2015

The National Bank of Angola intends to establish agreements that allow payments abroad in local currency, the kwanza, said Tuesday in Luanda the governor of the Angolan central bank.

“The BNA continues to seek additional sources of external liquidity, including through the currency exchange agreements on the basis of which balances of trade as well as financial transactions with our partners, can be paid in our own currency,” said José Pedro de Morais.

Since 2014 Angola has been facing an economic and financial crisis due to the sharp drop in tax revenue following a fall in the price of oil, which in a few months went from over US$100 to US$45 per barrel.

“But most importantly, we recognise that Angola, despite the oil price fall, also benefits from the fact that its future production remains a solid guarantee for access to international lines of credit to import strategic goods and services for relaunching economic activity,” added the governor.

However, the governor acknowledged that the crisis had caused a depreciation of 37 percent in kwanza, against the US dollar in just 12 months, speaking at the presentation session of the 10th edition of the “Banking under Analysis” report drawn up by Deloitte.

According to José Pedro de Morais, who was finance minister from 2002 to 2008, over 10 years the banking system in Angola grew from having 4,300 employees to 19,000 and from 230 branches to 1,600 at the end of 2014. (macauhub/AO)