National Bank of Angola carefully manages foreign reserves

29 August 2016

The National Bank of Angola (BNA) is carefully managing net foreign reserves, estimated at US$24 billion, on the basis of a minimum amount to ensure financial and exchange rate stability, the governor said when speaking in the Angolan parliament.

Valter Filipe said the BNA is working with commercial banks to understand the level of assets of each bank and its foreign exchange position, in order to replace it by selling foreign currency to begin, in a prudent and organised way, to allow transactions of accounts in foreign currency, according to daily newspaper Jornal de Angola.

Providing information to members of parliament as part of discussions of the bill to revise the state budget, the governor of the BNA said foreign currency will be made available through credit cards, transfers and very little through actual cash, because within the international financial system American and European regulators are making efforts to reduce the use of physical currency for control and to combat money laundering and financing of terrorism.

The governor of the BNA said the drastic reduction in oil revenues “caught everyone off guard including the financial system.”

Filipe acknowledged that “families have been having a difficult experience with the availability of foreign exchange,” but explained that the BNA does not have enough foreign currency and is supplying currency on a weekly basis for basic needs, travel, grants and health expenses.

The governor of the BNA said that to protect financial stability, the only guarantee the state has from the point of view of its financial reputation, are reserves of about US$24 billion and therefore advocated a strict and limited management taking into account the priorities and essential needs of the economy. (macauhub/AO)