The adoption of a new exchange rate policy by the National Bank of Angola (BNA) meant that the euro and the dollar rose in value in January, by 39.50% and 24.88%, respectively, against the Angolan kwanza, the Angolan central bank said in a statement.
The statement recalls that an extraordinary session of the Monetary Policy Committee was held on 4 January, during which it was decided to adopt a floating currency band exchange rate system, replacing the previous fixed exchange rate regime.
The BNA carried out its first foreign exchange auction of the year on 9 January, beginning the exchange rate formation process, under the floating currency band system.
The average exchange rate for the euro and the dollar on the primary exchange market on the last day of the month was EUR/AOA 257.39 and USD/AOA 207.21, starting from EUR/AOA 184.50 and USD/AOA 165.92 at the end of 2017.
The BNA also reported that the sale of foreign currency to the market, with a view to maintaining current levels of supply of consumer goods, led to a drop of 1.51% in Gross Reserves, which at the end of January stood at US$17.717 billion (compared with US$17.989 billion in December 2017).
The same statement said the Monetary Policy Committee had decided to keep the benchmark interest rate, the BNA rate, at 18%, and the interest rates on the standing deposit and absorption of liquidity facilities by 20% and 0%, respectively, as well as a required reserve ratio of 21%. (macauhub)