Ver Angola

Economy

Foreign exchange sales fell by 77 percent in the first half of 2020

Marcos Neto, director of the Exchange Control Department of the National Bank of Angola (BNA), informed that, in the first six months of 2020, the sale of foreign currency registered a drop of around 77.23 percent, compared to the same period of 2019, in which 85.81 percent was registered.

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The fact that the foreign exchange market has become freer, enabling companies in the oil and diamond sector to sell their foreign currency directly to commercial banks is the justification given by the responsible for the significant decrease in foreign currency sales in the first half of the past year.

Cited by Angop, Marcos Neto explained that the main feature of this policy is the fact that the kwanza exchange rate is flexible, since the value of the national currency against foreign currencies is established according to the market.

Speaking on Thursday at the Annual Cycle of Conferences of the National Bank of Angola (BNA), the official admitted that this policy simplifies the dynamics of the country's foreign exchange market, helping to reduce the number of imports, increase exports and control the inflation.

Due to this measure, adopted in 2019, the BNA interferes in the interbank market only through currency auctions, with corrections or assistance from the exchange rate.

Also during the period under review, commercial banks' foreign exchange purchases from customers grew by around 36 and 46 percent compared to previous semesters and 251.82 percent compared to the first half of 2019.

The successive growth in sales by the oil sector and the Ministry of Finance in the market are pointed out as positive results in the purchase of foreign exchange.