Country Report Angola
- ID: 2114010
- May 2016
- Region: Angola
- 24 Pages
- The Economist Intelligence Unit
Just two months after the appointment of Valter Filipe Duarte da Silva as governor of Banco Nacional de Angola (BNA, the central bank), the institution's two vice-governors have been replaced. The new vice-governors, Manuel António Tiago Dias and Suzana Maria de Fátima Camacho Monteiro, were already in senior management positions at the bank and are understood to have worked with Mr Duarte da Silva in the past at Banco de Fomento Angola.
This has been a turbulent period for the BNA. In January 2015 José de Lima Massano, whose tenure as governor won much respect, suddenly resigned. His successor, José Pedro de Morais Júnior-who was Angola's finance minister in 2002-08, and was seen as close to the president, José Eduardo dos Santos-only lasted 14 months before himself leaving in March. What is more, the latest reshuffle comes just weeks before Angola is due to begin formal discussions with the IMF regarding the possibility of an extended fund facility, and as the BNA-and the broader Angolan economy-struggles to deal with low oil prices. Significantly lower government revenue has eaten into international reserves, leading to shortages of foreign exchange and putting considerable pressure on the currency.
As of May 16th, the BNA was selling the kwanza at Kz166.707:US$1, down from Kz135.98:US$1 in mid-December 2015, and from Kz97.5:US$1 just a few months earlier. This pressure on the kwanza-which is trading for as much Kz500:US$1 on the parallel market-has had a major impact on the size of the BNA's weekly auctions to commercial banks. In one week in March it did not sell any foreign exchange at all, while in the first week of May, it auctioned just US$1.9m and EUR2m (US$2.3m) to allow the state-owned airline and television channel to pay overseas bills. Before the oil price began to fall in late 2014, monthly auctions would regularly exceed US$2bn. SHOW LESS READ MORE >