Oil companies operating in Angola will sell currencies directly to commercial banks

6 June 2019

Oil companies operating in Angola will sell foreign exchange directly to commercial banks under a proposal that is being prepared, the governor of the National Bank of Angola (BNA) said on Wednesday in Luanda.

“We want to ensure that these companies can directly sell foreign currency to the banks that operate in the country,” noted José de Lima Massano, speaking at the Oil and Gas 2019 conference, opened on Tuesday by President João Lourenço and due to end on Thursday.

The governor, quoted by the Angop news agency, also said that the central bank is working with the Association of Oil Operators to set a timetable, as there were some situations in which the almost voluntary organisation of the market for purchasing foreign currency put pressure on the exchange rate.

Lima Massano added that the central bank, when returning these transactions to commercial banks, wants to make sure that they take place within a stable framework and contribute to the development of the economy.

Referring to the country’s foreign reserves, which can be divided into three categories, including resources of the central bank, the Treasury and the commercial banks that are supervised by the BNA, the governor acknowledged that they originated in the oil sector.

“In light of this, any slowdown in production and price reduction has a direct impact on the country’s reserves,” he said, adding that the component that most affects the amount of foreign reserves is its use by the Treasury to honour state commitments. (Macauhub)