Angola central bank governor eyes move towards kwanza float

PUBLISHED: Tue, 23 Jan 2018 08:34:48 GMT

Angola’s central bank may begin the process of fully floating its kwanza currency in three months’ time, the bank’s governor Jose Massano said, according to daily O Pais on Monday.

Photo: Wikipedia

This month the bank ditched a currency peg and moved to a partial float that allows the kwanza to trade freely within a range set, but not disclosed, by the bank.

The bank will evaluate the new regime after three months, “and for the central bank governor this path should lead to the adoption of a (fully) floating exchange rate,” the newspaper said. It did not quote Massano directly.

A central bank spokeswoman said the paper’s information was correct.

Since the peg was abandoned, the kwanza has lost over 20 percent of its value to the dollar.

Massano also said that were the current rate at which the bank sells dollars maintained, Angola’s international reserves would halve by the end of the year, O Pais reported.

In 2017 the country’s international reserves fell over 30 percent to about $14 billion.

Reporting by Stephen Eisenhammer; editing by John Stonestreet

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