Banks buy only part of the euros put up for auction by the National Bank of Angola

5 October 2018

The 100 million euros auctioned on Wednesday by the National Bank of Angola (BNA) were not fully subscribed, with commercial banks buying just 74.53 million euros, the Angolan central bank said in a statement released on Thursday.

This auction, the 50th since the BNA introduced the floating exchange rate to replace the previous fixed-rate system on 9 January 2018, was the first time that the currencies taken to auction were not fully acquired.

Following this auction, the kwanza depreciated again against the European currency, to 347.721 kwanzas per euro, or a depreciation of 46.68% compared to the 185.40 kwanzas per euro fixed rate on 1 January.

At Monday’s auction, when the BNA sold 40 million euros, the European currency was traded at a weighted average rate of 345.941 kwanzas.

The National Bank of Angola reported at the end of September that it would place the equivalent of US$650 million in 14 sessions on the primary market in October. (macauhub)