The National Bank of Angola (BNA), in a note on the evolution of deposits by currency in the financial system, said that between 31 January 2015 and 20 June 2021 deposits in foreign currency "show a downward trend".
According to the BNA, on January 31, 2015, foreign currency deposits stood at $15.5 billion while on June 30, 2021 they reduced to $10.5 billion, down $5.0 billion.
The volatility of foreign currency deposits, the central bank explains, is due, "in large part, to the volatility of oil prices that directly affects oil company and National Treasury deposits in the banking system."
When deposits in foreign currency are expressed in national currency, "there is an increase in these deposits, which follows exactly the trend of the exchange rate, that is, despite the contraction of deposits in foreign currency, the depreciation of the kwanza, Angolan currency, resulted in an increase of these deposits," the BNA argues.
In the note, to which Lusa had access this Thursday, the BNA reiterates that the "increase in deposits in foreign currency, when expressed in national currency, is justified solely by the depreciation of the kwanza".
"Deposits in foreign currency expressed in kwanzas have increased their nominal value and not exactly their volume, so it should not be confused with an increase in transactions in foreign currency in the economy or with an increase in the levels of 'dollarization' in the national financial system," the BNA also notes.
Since late 2014, Angola has been experiencing an economic, financial and foreign exchange crisis due to the sharp drop in the price of oil, the main support of the Angolan economy, in the international market with negative effects on the socio-economic condition of citizens and companies.
