Angola’s central bank is injecting $150 million into the foreign exchange market to facilitate rice imports and address private sector transaction needs. This strategic move aims to stabilize the Angolan kwanza and support economic activity.
The National Bank of Angola (BNA) announced the sale of foreign currency to commercial banks in a statement on its website. Of the total amount, $88 million is allocated specifically for rice imports, a crucial staple in the Angolan diet. The remaining $60 million will assist individuals in settling outstanding transactions with commercial banks. This allocation aims to alleviate pressure on individuals and businesses facing foreign currency shortages. The sale took place over two days, December 9th and 10th.
This recent intervention follows a similar move in October when the BNA sold $248 million to commercial banks. These injections of foreign currency into the market have demonstrably supported the Angolan kwanza. The currency has strengthened to 924 kwanzas per dollar, a notable recovery from its low of 961 kwanzas per dollar on October 1st, which represented its weakest point since 1999. The BNA’s actions reflect its commitment to managing exchange rate volatility and ensuring access to foreign currency for essential imports and critical transactions.
These actions underscore the central bank’s proactive approach to stabilizing the Angolan economy amidst fluctuating global market conditions. The injection of foreign currency aims to bolster the local currency, control inflation, and facilitate crucial imports like rice, ensuring food security and price stability for Angolan citizens. The ongoing efforts to strengthen the kwanza reflect the BNA’s commitment to maintaining a stable economic environment.
