Angola’s international reserves fall to the lowest level in recent years in May

3 July 2019

Net international reserves in Angola fell again in May, reaching US$10.3 billion, a decrease of US$508 million from the amount recorded a month earlier, according to the Banco BPI economic and financial studies office.

The report released by the office also said that “the May amount is the second lowest in recent years” and predicts that compared to December 2018 there will be a reduction of US$354 million, with a monthly decrease of US$71 million.

The document said that the Angolan currency, the kwanza, has continued to depreciate since the beginning of 2019, having lost 9.3% of its value against the dollar in the first six months of this year.

“Although it is still a considerable loss of value, it is less pronounced than was witnessed in the same period in 2018, with a 33.43% less,” the report said.

The bulletin of the economic and financial studies office of Banco BPI added that if the kwanza keeps with the same trend in the second half of the year, the Angolan currency will end 2019 at around 375 kwanzas to the dollar, against a current level of 340.3 kwanzas.

Depreciation was slightly more pronounced against the dollar in the first six months of the year (-13.7%) on the informal market, which explains the difference in the exchange rate from the official market, which is now 39.6%, significantly above the 21% registered in October 2018. (Macauhub)