Angola’s currency sees first rise against US dollar this year

12 October 2018

Angola’s currency, the kwanza on Wednesday recorded its first appreciation against the dollar since the beginning of the year, with the US currency worth 302.416 kwanzas against 304.049 kwanzas in the currency auction held on Monday by the National Bank of Angola (BNA).

The figures released by the Angolan central bank showed that this is the first appreciation of the Angolan currency since the new floating exchange rate system came into force on 9 January, 2018, replacing the previous fixed exchange rate system.

At its 53rd foreign exchange auction to commercial banks, the Angolan National Bank on Wednesday offered €50 million to the primary market, but only placed €16.25 million (32.51%), with the kwanza maintaining an exchange rate of 349.179 per euro.

This exchange rate means that the kwanza has lost 46.90% of its value against the European currency since the beginning of the year.

In addition to the appreciation of the kwanza against the US dollar, Wednesday’s session was the third time that the amount put up for auction by the central bank was not fully acquired by commercial banks.

The first time this happened was in the 3 October auction when the BNA made available €100 million of which €74.53 million was sold and the second time on 5 October also with €100 million, while banks bought just €55.54 million. (macauhub)