Exchange rate adjustment of the kwanza will be maintained, central bank governor says

11 May 2018

The currency adjustment of the kwanza will be maintained, as “the results achieved so far are satisfactory,” said the governor of the National Bank of Angola (BNA) on Wednesday in Luanda, on the sidelines of a parliamentary discussion of two draft bills for the repatriation of Angolan capital from abroad.

Since the introduction of the new floating exchange rate regime in January, the kwanza has already lost more than 32% of its value against the euro, which has become the benchmark foreign currency for Angola, given the country’s difficulty in obtaining dollars.

“We are very pleased with what has already happened, both with regard to access to currency by companies, which is more open, more widespread, which for many months, in some cases even years, could not make any transactions and now they can,” said José de Lima Massano, quoted by the local press.

The governor pointed out that the gap between formal and informal exchange rates is expected to decrease, standing at around 70% compared to over 150% when the Angolan central bank’s Monetary Policy Commission decided to adopt the new regime.

Massano said that the first phase of the process of recognition of all responsibilities had been concluded, especially those of companies, in terms of foreign debts that have not been settled for a number of years. (macauhub)