Angola’s net international reserves fell by US$717 million in September to US$10.1 billion, the lowest figure in the National Bank of Angola statistics series, according to the weekly market comment from Banco de Fomento Angola (BFA).
BFA analysts said Angolan net international reserves decreased by US$555 million compared to December 2018, a monthly average drop of US$62 million, representing 5.6 months of imports in September, and below the six-month target period set by the authorities.
In the same period of 2018 Angola’s net international reserves had recorded an average monthly drop of US$183 million, the document said.
The report recalls that the threshold agreed with the International Monetary Fund (IMF) for December 2019 is US$9.1 billion.
BFA’s market comment mentions the decisions made at the latest meeting of the National Bank of Angola Monetary Policy Commission, which decided to apply “a floating exchange rate regime in which the exchange rate is freely defined by the market,” a change in line with the IMF statement that excess foreign exchange demand would only be resolved “when the exchange rate can vary freely.”
The Angolan currency, the kwanza, has depreciated by 6.1% against the dollar in the last seven days, with the dollar trading at an average exchange rate of 478.2 kwanzas last Friday, with depreciation since the beginning of the year reaching 35.97%. (Macauhub)