Angolan kwanza’s variation against major currencies limited to 2.0%

22 January 2018

The exchange rate of Angolan notes and coins has been unified, with the variation limited to 2.0% against the benchmark exchange rate published on the National Bank of Angola website, the governor of the central bank said on Friday in Luanda.

José de Lima Massano, during a meeting with top officials of commercial banks in the country, also said that the new rules for the foreign exchange market take effect on 22 January. He noted an instruction had been published on procedures for the sale of foreign currency by commercial banks to their clients, in order to guarantee the ethics, balance, and transparency of the foreign exchange market.

The maximum variation band stipulates that proposals and purchase of foreign currency put forward by commercial banks in the regular auctions of the National Bank of Angola cannot be higher or lower than the 2.0% now disclosed.

“The rules of the new exchange regime set out a maximum margin of 2% of the benchmark exchange rate, published by the BNA,” it said.

The governor said that, under the new rules, last Thursday the BNA held its first auction to establish the exchange rate, which made finding that demand outstripped supply. The central bank plans to carry out many more auctions for the same purpose.

Lima Massano noted that the value that the commercial banks have put forward operations of around US$3 billion, compared to approximately US$100 million that the BNA has sold in the auctions, which suggests there will be an upward adjustment. (macauhub)