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National Bank of Angola injects $200 million into market

The last time the central bank made a similar move was back in June 2023, when it released $432.3 million into the market.
National Bank of Angola injects $200 million into market www.whoownsafrica.com National Bank of Angola injects $200 million into market www.whoownsafrica.com
Angola’s central bank in Luanda.

The National Bank of Angola (BNA) has injected a substantial $200 million into the market, signaling a strategic move to address increasing market needs.

This significant sale, acquired by 17 commercial banks at an average exchange rate of 843.53 kwanzas per dollar, marks the first currency sale by the BNA this year.

Analysts from Banco Millenium Atlântico’s research department have noted that the timing of this move could be attributed to the growing demand in the market.

The last time the central bank made a similar move was back in June 2023, when it released $432.3 million into the market.

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The average exchange rate in the recent sale on the Bloomberg platform exceeded the official rate of 834 kwanzas against the dollar, demonstrating the impact of the transaction.

Despite a slight depreciation of 0.17 percent in April, with the kwanza standing at 834.06 against the dollar, the currency still managed a monthly appreciation of 0.99 percent against the euro, reaching 891.44 kwanzas.

Analysts have pointed out that the performance of the kwanza reflects the limited supply of currency in the market.

While the exchange rate depreciation in the first four months of this year was 0.7 percent, it remains relatively stable compared to the same period in 2023, which saw a depreciation of 0.72 percent.

Looking at the informal foreign exchange market, there is a parallel trend to the formal market, although the exchange rate difference reached an average of 32 percent in April.

This is above the government’s target of 20 percent set in the 2017-2018 Macroeconomic Stabilization Program, highlighting the ongoing challenges in the foreign exchange market.

This suggests that there has been a slight uptick in the supply of currency compared to previous months.

Despite the governor’s estimated average supply of 600 million dollars per month, it appears that the actual amount sold in April exceeded expectations.

National Bank of Angola injects $200 million into market www.whoownsafrica.com
Angola’s central bank in Luanda.

This increase in foreign exchange sales could have various implications for the economy, including potential impacts on inflation rates, exchange rates, and overall market stability.

It will be interesting to see how this trend continues in the coming months and how the Central Bank responds to ensure the stability of the currency supply.

Overall, the data from Bloomberg and the Atlantic’s analysis provide valuable insights into the current state of the currency market and highlight the importance of monitoring these trends closely.

Go to Who Owns Africa for more news from the African continent.

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