Angola’s Kwanza loses more than 46% of its value against the euro

28 September 2018

The three foreign exchange auctions held on Monday, Tuesday and Wednesday by the National Bank of Angola have resulted in the kwanza losing 46.11% of its value against the European currency since the beginning of the year, according to official statements.

On Wednesday, the Angolan central bank sold on the primary market 32.7 million euros to pay for general operations, including current needs and arrears that for any reason have not yet been paid abroad.

By the end of the session, the reference exchange rate stood at 344.001 per euro, compared to 185.40 kwanzas per euro in January before the new floating exchange rate regime came into effect.

At the auction on Tuesday, the Angolan central bank sold 150 million euros to open letters of credit with the purpose of ensuring the import of miscellaneous goods.

In this session, the value of the euro remained unchanged from the value calculated on Monday of 342.019 kwanzas, when the BNA sold 45 million euros to pay for general operations, including for individuals, as well as commercial operations still in the possession of commercial banks for the period from 2015 to 2017 (foreign exchange arrears) that for some reason have not yet been paid abroad.

The National Bank of Angola also said that in October it will sell foreign currency in the amount equivalent to US$650 million through currency auctions and quantity auctions (letters of credit).

The bank also noted that from 1 October onwards it will announce on the last business day of each week the weekly result of commercial bank auction sales and the amount of foreign currency that will be sold in the auctions of the following week.

After each auction, the bank will post on its website the amount made available, the number of participants, the highest and lowest exchange rate allowed and the resulting average exchange rate. (macauhub)

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