Angop - Agência de Notícias Angola Press

Central Bank consolidates exchange rate policies

Thu, 30 Jul 2020 13:40 - Economy

Luanda - The Angolan Central Bank (BNA) is consolidating the exchange rate policy process in Angola, aiming at a greater organization, efficiency and fight against corruption schemes on the operational procedures, affirmed last Tuesday the BNA governor, Jose de Lima Massano.

  • National Reserve Bank of Angola (BNA) governor, José de Lima Massano (file)

Interviewed in the television programme of the Public Television of Angola (TPA) “Grande Entrevista” (Great Interview), Lima Massano underlined that the substitution of fixed to floating exchange rates was, until now, the best measure adopted, with the positive balance of payments and current accounts for goods and services.

As a result of the choices made, within the scope of the ongoing monetary and exchange rate policies, the country stopped registering situations of arrears which in January 2018 reached US $5 billion.

The floating exchange rate, according to José Massano, also brought other opportunities for the country, especially in the bet on domestic production that has been increasing, reflecting the reduction of 23% in the levels of food imports, only in this first semester.

He said that the instructions given to commercial banks, for the execution of foreign exchange transactions up to five business days, are part of the actions that are yielding results in the foreign exchange market.

Among the goals, the regulator of the banking system wants to reach the point of having only the function of monitoring, inspection and supervising the market.

Currently, said the governor, there is no need for citizens to acquire foreign currency in the black market, since commercial banks are available for that purpose.

"Complaints to the BNA in terms of foreign exchange operations have been decreasing a lot lately," said the governor, stressing that the acquisition system was functional.

He also reminded that now the amount of foreign currency available in the informal market is very low, mainly in this moment that the country faces the covid-19 disease.

“We did a recent fieldwork in the market and it was found that there are operations that are happening, that are illegal, but very small ones that occur on the street ", he said.

According to the manager, the currency obtained from the re-export and sale of goods from Angola to the other side of the border is what feeds the parallel market, since the values ​​resulting from the deal do not enter the financial system.