Ver Angola

Banking and Insurance

BNA is no longer the main provider of foreign currency

Manuel António Tiago Dias, deputy governor of the National Bank of Angola (BNA), announced that as part of the reforms of the foreign exchange market, the BNA is no longer the main provider of foreign currency.

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Speaking at the opening of a webinar on the challenges in the operationalization of monetary policy, the official made the "framework on the dynamics of monetary policy implemented since 2018," and stressed that under the reforms of the foreign exchange market, the central bank is no longer the main provider of foreign currency.

Quoted in a note published on the BNA website, Manuel António Tiago Dias also made it known that the bank has "simultaneously abandoned the exchange rate anchor in favor of the monetary anchor and has focused on the search for the stability of prices of goods and services, in a context marked by a prolonged recession of economic activity."

In the webinar, among the challenges presented by the representatives of central banks are "the effectiveness of monetary policy," particularly that conducted by the BNA, "based on the indirect control of monetary aggregates through the monetary base with a view to stabilizing the prices of goods and services in the economy, managing structural excess liquidity and managing the expectations of economic agents."

The representatives also alerted to the "need to fight inflation", considering that this is "an evil that affects in an asymmetric way the different sectors of society", highlighting the difficulties caused to the most vulnerable families.

The webinar took place on July 22, via the Zoom platform, with the participation of central bank experts from Angola, Portugal, Zambia, South Africa, the Seychelles, representatives from Bloomberg and the International Monetary Fund.