National Bank of Angola sells euros with no change to exchange rate

16 July 2018

The National Bank of Angola carried out a new sale of foreign currency, in this case, €100 million, in an auction that had the peculiarity of closing without the exchange rate of the euro against the kwanza changing, the central bank said in a statement released on Friday.

The €100 million sold by the National Bank of Angola to commercial were intended to be used to open letters of credit to secure imports of various goods, with a priority on raw materials.

The Angolan central bank also said it had sold an additional euro equivalent of US$30.9 million to cover miscellaneous goods operations, focusing on the Agriculture, Fisheries and Manufacturing sectors, with settlement in the form of letters of credit, remittances and documentary collections, as well as advance payments up to a maximum amount of US$25,000.

Last June, the governor of the National Bank of Angola, José de Lima Massano, announced that the import of goods would essentially be carried out through letters of credit, as these are the best financial instrument used in international trade. (macauhub)