Angola’s currency continues to depreciate against the euro

20 June 2018

The Angolan currency fell further against the euro on Monday, by 1.43% to 285.555 Kwanzas, following a currency auction by the National Bank of Angola in which 50 million euros were made available to commercial banks, according to official information from the central bank.

Seventeen banks contributed to the calculation of the new benchmark exchange rate, with the highest rate being 286.387 kwanzas and the lowest at 284.981 kwanzas per euro.

Following this auction, the kwanza has suffered a depreciation of more than 35% against the euro since January when the Angolan central bank decided to abandon the fixed exchange rate system replacing it with a floating exchange rate in which commercial banks determine it, based on supply and demand.

The dollar is now quoted at an average rate of 242 kwanzas, while on 1 January it was worth 165.92 kwanzas, a depreciation of 31.39%.

The official statement from the National Bank of Angola warned commercial banks to avoid making new foreign currency sales to cover transactions ordered by importers that have failed to provide documents proving the entry of the goods, except in cases where duly substantiated reasons are provided and until the situation is remedied. (macauhub)