Thursday 27 July 2017

Angola: There will be devaluation of Kwanza any soon, Central Bank says

Angola: There will be devaluation of Kwanza any soon, Central Bank says
(Agence Ecofin 06/28/17)

In Angola, the kwanza will not be devaluated, any soon at least. This was announced by the governor of the Central Bank of Angloa, Valter Filipe da Silva, at the end of joint session of economic commission and the commission for the real economy of the council of ministers.

The governor explained that inflation which exceeded more than 40% has considerably decreased over the past months.

"That is why we understand and will continue to reaffirm that at this moment there is no need to alter the exchange rate or devalue the national currency," da Silva said.

According to the official cited by the Angolan press agency, Angop, the Central Bank adopted a monetary policy to insure financial stability and control level of prices, exchange rates and interest rates, in order to reduce general inflation. In addition, the measure aims to protect net international reserves which constitute a pillar for the country's financial stability.

At the beginning of May, the minister of finances, Archer Mangueira, said Angola would at a point in time have to devaluate its currency to stabilize its external reserves. According to him, it would help reduce imports in line with government’s main objectives. However, he added that it was not urgent. “It is not the best time, it could aggravate inflation,” he emphasized.

Fiacre E. Kakpo

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