Angola's central bank left its key interest rates unchanged, saying disinflation is continuing despite the implementation of value-added-tax (VAT) and the liberalization of the exchange rate in October.
The National Bank of Angola (BNA), which has cut its benchmark BNA rate by 100 points this year to 15.50 percent, added its monetary policy stance will remain restrictive through finer liquidity management by open market operations in order to consolidate the floating exchange rate regime and to ensure greater price stability.
In October BNA's monetary policy committee raised the reserve requirement for kwanza deposits by 500 basis points to 22 percent and set a 10.0 percent interest rate for a new 7-day facility as it completed a transition to a market-determined exchange rate for the kwanza begun in January 2018.
This included scrapping a 2.0 percent trading band margin that had limited the kwanza's move during currency auctions.
After taking over the reins of BNA in October 2017 - part of Angola President Joao Laurenco's move to clean up the country's image as corrupt - Governor Jose Massano began a major overhaul of BNA in January 2018, including ditching a fixed exchange rate regime and adopting the monetary base as a operational variable to better control liquidity.
Continuing BNA's policy of normalizing and reducing its intervention in the foreign exchange market, the bank today said it would stop purchasing foreign currency from oil companies as of Jan. 2, 2020 and in the future they should sell directly to commercial banks.
The limit on the foreign exchange position of commercial banks would also be lowered to 2.5 percent from 5.0 percent, with both measures aimed at raising the number of participants in the foreign exchange market and boosting the interbank foreign exchange market.
Since BNA began liberalizing the foreign exchange market by using auctions to set a reference rate in January last year, the kwanza has lost almost two-third of its value.
Today the kwanza was trading at 491.2 to the U.S. dollar, down 23 percent since October 1, 37 percent since the start of this year and down 66.2 percent since the pre-January 2018 peg of 166.
The monetary base expanded by 6.81 percent in October as compared to an 11.68 percent contraction in September, reflecting an increase in bank reserves by 8.24 percent, and bank notes and coins in circulation by 3.86 percent.
The M2 monetary aggregate, which comprises bank deposits, notes and coins, rose 2.97 percent in October while the stock of credit in local currency expanded 2.6 percent in October from September but on an annual basis credit stock was down 4.62 percent.
Angola's inflation rate was steady at 16.08 percent in October and September, and in September Massano told Bloomberg inflation was expected to fall below 10 percent by 2022, providing scope for interest rates to fall.
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Showing posts with label National Bank of Angola. Show all posts
Showing posts with label National Bank of Angola. Show all posts
Friday, November 29, 2019
Friday, May 24, 2019
Angola cuts rate another 25 bps as inflation declines
Angola's central bank cut its benchmark BNA rate by a further 25 basis points to 15.50 percent and said this was based on the fact that "inflation continued on its downward trajectory, as well and the evolution of the monetary base in national currency, the monetary policy operational variable, which contracted 0.54 percent in the last 12 months."
It is the third rate cut by the National Bank of Angola since July 2018 and the second cut this year, bringing the total cut to the BNA rate in the current easing cycle to 250 basis points.
Angola's inflation rate fell for the fourth month in a row to 17.36 percent in April from 17.56 percent in March for the lowest level since January 2016 despite the steady, but continued depreciation of the exchange rate of the kwanza since January 2018 when Governor Jose Massano replaced the bank's fixed exchange rate regime with a floating regime.
Since then BNA has used auctions to set a reference rate for the kwanza, which was trading at 328.9 to the U.S dollar today, down 6.1 percent since the start of this year and down 50 percent from its level when it was pegged to the dollar around 166.
Massano's first move after taking over BNA in October 2017 - part of President Joao Laurenco's move to clean up Angola's image as a corrupt state - was to raise the BNA rate by 200 basis points to hammer home his commitment to lower inflation.
In addition to the rate hike in November 2017 and the new currency regime, Massano has overhauled BNA policy framework by adopting the monetary base as an operational variable for monetary policy to better control liquidity, lowered and changed the basis for banks' mandatory reserves, and unified the rate on the marginal lending facility with the bank's basic interest rate.
As many other oil exporting nations, Angola was hit hard by the plunge in crude oil prices in 2014 and suffered from a shortage of foreign currency. Inflation rose sharply in 2016 and hit 41.12 percent in December that year but has slowly, but surely, been falling since then.
In April Angola's gross international reserves amounted to US$16.33 billion, enough to cover 8.97 months of imports, up from $15.99 billion in February.
www.CentralBankNews.info
It is the third rate cut by the National Bank of Angola since July 2018 and the second cut this year, bringing the total cut to the BNA rate in the current easing cycle to 250 basis points.
Angola's inflation rate fell for the fourth month in a row to 17.36 percent in April from 17.56 percent in March for the lowest level since January 2016 despite the steady, but continued depreciation of the exchange rate of the kwanza since January 2018 when Governor Jose Massano replaced the bank's fixed exchange rate regime with a floating regime.
Since then BNA has used auctions to set a reference rate for the kwanza, which was trading at 328.9 to the U.S dollar today, down 6.1 percent since the start of this year and down 50 percent from its level when it was pegged to the dollar around 166.
Massano's first move after taking over BNA in October 2017 - part of President Joao Laurenco's move to clean up Angola's image as a corrupt state - was to raise the BNA rate by 200 basis points to hammer home his commitment to lower inflation.
In addition to the rate hike in November 2017 and the new currency regime, Massano has overhauled BNA policy framework by adopting the monetary base as an operational variable for monetary policy to better control liquidity, lowered and changed the basis for banks' mandatory reserves, and unified the rate on the marginal lending facility with the bank's basic interest rate.
As many other oil exporting nations, Angola was hit hard by the plunge in crude oil prices in 2014 and suffered from a shortage of foreign currency. Inflation rose sharply in 2016 and hit 41.12 percent in December that year but has slowly, but surely, been falling since then.
In April Angola's gross international reserves amounted to US$16.33 billion, enough to cover 8.97 months of imports, up from $15.99 billion in February.
www.CentralBankNews.info
Friday, March 29, 2019
Angola maintains rate as inflation seen continuing trend
Angola's central bank left its benchmark BNA rate steady at 15.75 percent, along with its other key rates and the reserve ratio, saying it expects inflation to remain along the same trend as seen in recent months.
In January the National Bank of Angola (BNA) cut its rate by 75 basis points due to falling inflation and a contraction in the monetary base, BNA's operational variable as part of Governor Jose Massano's thorough overhaul of the bank's operations since he took over in October 2017.
The rate cut in January was BNA's second rate cut since July 2018, bringing the total easing in the current cycle to 225 basis points.
In February Angola's inflation rate fell to 17.96 percent from 18.2 percent in January, continuing the steady decline since it hit 41.12 percent in December 2016.
BNA said the monetary aggregate M2 rose 1.7 percent in the last 12 months while the stock of credit shrank by 0.11 percent in February following a 0.4 percent rise in January for a decline of 2.41 percent in the last 12 months.
BNA added measures should be taken to boost credit to the primary sector, the output of goods.
In January Angola's trade deficit amounted to US$224.96 but in February there was a surplus of $1.62 billion, helping narrow the trade deficit in the first two months of this year by 64.68 percent from the last two months of 2018.
Angola's gross international reserves fell to $15.99 billion in February, an import cover of 8.77 months, down from $16.6 billion in December 2018.
www.CentralBankNews.info
In January the National Bank of Angola (BNA) cut its rate by 75 basis points due to falling inflation and a contraction in the monetary base, BNA's operational variable as part of Governor Jose Massano's thorough overhaul of the bank's operations since he took over in October 2017.
The rate cut in January was BNA's second rate cut since July 2018, bringing the total easing in the current cycle to 225 basis points.
In February Angola's inflation rate fell to 17.96 percent from 18.2 percent in January, continuing the steady decline since it hit 41.12 percent in December 2016.
BNA said the monetary aggregate M2 rose 1.7 percent in the last 12 months while the stock of credit shrank by 0.11 percent in February following a 0.4 percent rise in January for a decline of 2.41 percent in the last 12 months.
BNA added measures should be taken to boost credit to the primary sector, the output of goods.
In January Angola's trade deficit amounted to US$224.96 but in February there was a surplus of $1.62 billion, helping narrow the trade deficit in the first two months of this year by 64.68 percent from the last two months of 2018.
Angola's gross international reserves fell to $15.99 billion in February, an import cover of 8.77 months, down from $16.6 billion in December 2018.
www.CentralBankNews.info
Friday, January 25, 2019
Angola cuts rate 75 bps on decelerating inflation
Angola's central bank lowered its benchmark BNA rate by 75 basis points to 15.75 percent, saying the cut was supported by the decline in inflation during 2018 and a 10.71 percent contraction in the monetary base, the bank's operational variable, in the last 12 months.
It is the National Bank of Angola's (BNA) second rate cut since July 2018, bringing the total reduction to 225 basis points in this easing cycle.
BNA Governor Jose Massano has been overhauling the central bank since he took over in October 2017 and his first move the following month was to raise the BNA rate 200 basis points to 18.0 percent to reinforce his commitment to tackling inflation.
Angola's inflation rate began accelerating in early 2015 and rose steadily before hitting 41.12 percent in December 2016. Although inflation then eased in in the first half of 2017, it rose again in October, the month Massano took over from his predecessor, Walter Filipe da Silva.
The appointment of Massano as BNA Governor was part of President Joao Laurenco's move to clean up Angola's image as a corrupt nation. Laurenco took over as president in September 2017 from Jose Eduardo dos Santos, who had been in power for 38 years.
In addition to the rate hike in November 2017, Massano has carried out a plethora of policy changes at the BNA, including adopting the monetary base as an operational variable for monetary policy to better control liquidity, replacing the fixed exchange rate regime with a floating regime with bands, conducting auctions to set a reference rate for the kwanza, lowering and changing the basis for banks' mandatory reserves, and unifying the rate on the marginal lending facility with that of the bank's basic interest rate.
Most recently, BNA earlier this month revoked the banking licenses of two banks after they failed to raise their capital to meet new minimum levels. Local media reported that both institutions had ties to the sons of the former president.
Throughout 2018 Angola's inflation rate has decelerated steadily from 22.72 percent in January although it rose in December to 18.6 percent from 18.36 in November.
In today's statement, BNA's monetary policy committee said the stock of credit in kwanza rose 0.50 percent in December from November for annual growth of 20.16 percent while gross international reserves declined to US$16.16 billion in December 2018 from $18.23 billion in December 2017, enough to finance 6.8 months of imports.
After depreciating steadily following BNA's switch to a floating exchange rate regime, the kwanza has stabilized in recent months and was trading at 310.8 to the U.S. dollar today, down 0.7 percent this year.
BNA said it would maintain the rate on its permanent liquidity absorption facility at 0 percent along with the mandatory reserve ratio in kwanza at 17.0 percent and the ratio for foreign currency deposits at 15.0 percent.
www.CentralBankNews.info
It is the National Bank of Angola's (BNA) second rate cut since July 2018, bringing the total reduction to 225 basis points in this easing cycle.
BNA Governor Jose Massano has been overhauling the central bank since he took over in October 2017 and his first move the following month was to raise the BNA rate 200 basis points to 18.0 percent to reinforce his commitment to tackling inflation.
Angola's inflation rate began accelerating in early 2015 and rose steadily before hitting 41.12 percent in December 2016. Although inflation then eased in in the first half of 2017, it rose again in October, the month Massano took over from his predecessor, Walter Filipe da Silva.
The appointment of Massano as BNA Governor was part of President Joao Laurenco's move to clean up Angola's image as a corrupt nation. Laurenco took over as president in September 2017 from Jose Eduardo dos Santos, who had been in power for 38 years.
In addition to the rate hike in November 2017, Massano has carried out a plethora of policy changes at the BNA, including adopting the monetary base as an operational variable for monetary policy to better control liquidity, replacing the fixed exchange rate regime with a floating regime with bands, conducting auctions to set a reference rate for the kwanza, lowering and changing the basis for banks' mandatory reserves, and unifying the rate on the marginal lending facility with that of the bank's basic interest rate.
Most recently, BNA earlier this month revoked the banking licenses of two banks after they failed to raise their capital to meet new minimum levels. Local media reported that both institutions had ties to the sons of the former president.
Throughout 2018 Angola's inflation rate has decelerated steadily from 22.72 percent in January although it rose in December to 18.6 percent from 18.36 in November.
In today's statement, BNA's monetary policy committee said the stock of credit in kwanza rose 0.50 percent in December from November for annual growth of 20.16 percent while gross international reserves declined to US$16.16 billion in December 2018 from $18.23 billion in December 2017, enough to finance 6.8 months of imports.
After depreciating steadily following BNA's switch to a floating exchange rate regime, the kwanza has stabilized in recent months and was trading at 310.8 to the U.S. dollar today, down 0.7 percent this year.
BNA said it would maintain the rate on its permanent liquidity absorption facility at 0 percent along with the mandatory reserve ratio in kwanza at 17.0 percent and the ratio for foreign currency deposits at 15.0 percent.
www.CentralBankNews.info
Friday, September 21, 2018
Angola maintains rate as inflation falls 10th month in row
Angola's central bank left its benchmark BNA rate at 16.50 percent, citing the 10th consecutive month of declining inflation and a 2.45 percent year-on-year contraction in the monetary base, the operational variable of the bank's monetary policy since November last year.
In July the National Bank of Angola (BNA) lowered its BNA rate by 150 basis points and cut the mandatory reserve ratio for kwanza deposits on expectations that inflation this year would be lower than the 23 percent earlier forecast.
The July easing followed the bank's decision in May to unify the rate on its marginal lending facility with that of its basic interest rate, part of the major overhaul of BNA's operations since Jose Massano took over as governor in October last year.
Angola's inflation rate has been decelerating sharply since hitting 41.12 percent in December 2016 and fell to 18.56 percent in August from 19.01 percent in July, the lowest since February 2016.
Angola's international gross reserves dropped to US$17.18 billion in August from $18.54 billion in July and $18.06 billion in December but still cover 7.1 months of imports of goods and services.
Credit issued by banks to the economy rose by 1.57 percent in the month of August for an annual rise of around 2.81 percent, BNA said.
Under Massano the BNA in January replaced its fixed exchange rate regime that was in place since April 2016 with a floating regime with bands and began auctions to set a reference rate for the kwanza, which quickly fell and has continued to depreciate steadily since then.
Today the kwanza was trading at 289.15 to the U.S. dollar, down some 43 percent since Jan. 4 when the exchange rate was floated. Currency auctions began on Jan. 9.
The latest change in BNA's operations will take place on Oct. 1 when the central bank will cease selling foreign currency directly to commercial banks as there is a now a regular supply of foreign currency and the legal framework has been strengthened.
Angola suffered a shortage of foreign currency following the plunge in crude oil prices in 2014
During the period under review, the BNA said it sold a total of US$1.42 billion to commercial banks for cumulative sales this year of $9.48 billion, down 6.50 percent from the amount sold in the same period last year.
www.CentralBankNews.info
In July the National Bank of Angola (BNA) lowered its BNA rate by 150 basis points and cut the mandatory reserve ratio for kwanza deposits on expectations that inflation this year would be lower than the 23 percent earlier forecast.
The July easing followed the bank's decision in May to unify the rate on its marginal lending facility with that of its basic interest rate, part of the major overhaul of BNA's operations since Jose Massano took over as governor in October last year.
Angola's inflation rate has been decelerating sharply since hitting 41.12 percent in December 2016 and fell to 18.56 percent in August from 19.01 percent in July, the lowest since February 2016.
Angola's international gross reserves dropped to US$17.18 billion in August from $18.54 billion in July and $18.06 billion in December but still cover 7.1 months of imports of goods and services.
Credit issued by banks to the economy rose by 1.57 percent in the month of August for an annual rise of around 2.81 percent, BNA said.
Under Massano the BNA in January replaced its fixed exchange rate regime that was in place since April 2016 with a floating regime with bands and began auctions to set a reference rate for the kwanza, which quickly fell and has continued to depreciate steadily since then.
Today the kwanza was trading at 289.15 to the U.S. dollar, down some 43 percent since Jan. 4 when the exchange rate was floated. Currency auctions began on Jan. 9.
The latest change in BNA's operations will take place on Oct. 1 when the central bank will cease selling foreign currency directly to commercial banks as there is a now a regular supply of foreign currency and the legal framework has been strengthened.
Angola suffered a shortage of foreign currency following the plunge in crude oil prices in 2014
During the period under review, the BNA said it sold a total of US$1.42 billion to commercial banks for cumulative sales this year of $9.48 billion, down 6.50 percent from the amount sold in the same period last year.
www.CentralBankNews.info
Monday, April 30, 2018
Angola holds rate as inflation eases, FX reserves rise
Angola's central bank left its basic interest rate (BNA) at 18.0 percent and said it had sold 735.94 million euros to commercial banks in March, pushing up total sales this year to 2.246 billion from 1.510 billion in February.
After years of foreign currency shortage, the National Bank of Angola (BNA) in January switched to a floating exchange rate regime with bands from a fixed exchange rate system, and began auctions of foreign currency to determine a reference rate.
The BNA's monetary policy committee said the difference between the exchange rate of the kwanza against the euro between Jan. 9, when a new foreign currency regime was adopted, and March 30 had narrowed to 83.72 percent from 101.19 percent.
Against the U.S. dollar the kwanza was trading at 225.9, down 26.5 percent since Jan. 8.
Angola's inflation rate has been declining steadily since hitting 41.12 percent in December 2016 and fell to 20.9 percent in March from 21.47 percent in February.
The country's monetary base, which is now a monetary policy variable, grew by 4.56 percent in March for an annual increase of 15.09 percent. Credit issued in kwanza, especially to the production and distribution of electricity, gas, water and education, rose 0.33 percent in March for an annual rise of around 9.50 percent, BNA said.
After years of foreign currency shortage, the National Bank of Angola (BNA) in January switched to a floating exchange rate regime with bands from a fixed exchange rate system, and began auctions of foreign currency to determine a reference rate.
The BNA's monetary policy committee said the difference between the exchange rate of the kwanza against the euro between Jan. 9, when a new foreign currency regime was adopted, and March 30 had narrowed to 83.72 percent from 101.19 percent.
The combined impact of higher oil exports and prices helped the trade balance rise to US$2.67 billion in March, up from $2.01 billion in February, and pushed up the level of international reserves by 1.26 percent to $17.69 billion from February, the equivalent of 7.37 months of imports.
The adoption of a new exchange rate regime in January led to an immediate plunge in the value of the kwanza, which has continued to depreciate since then. Today the kwanza was trading at 273 to the euro, down just over 27 percent since Jan. 8, the day before the switch in exchange rate regime.Against the U.S. dollar the kwanza was trading at 225.9, down 26.5 percent since Jan. 8.
Angola's inflation rate has been declining steadily since hitting 41.12 percent in December 2016 and fell to 20.9 percent in March from 21.47 percent in February.
The country's monetary base, which is now a monetary policy variable, grew by 4.56 percent in March for an annual increase of 15.09 percent. Credit issued in kwanza, especially to the production and distribution of electricity, gas, water and education, rose 0.33 percent in March for an annual rise of around 9.50 percent, BNA said.
Thursday, March 29, 2018
Angola maintains rate as inflation continues to decelerate
Angola's central bank left its benchmark BNA rate at 18.0 percent for the third time after switching to a floating exchange rate system and said it had sold 672.75 million euros to commercial banks in the period under review for accumulated sales of 1.509.85 billion euros in 2018.
The National Bank of Angola (BNA) on Jan. 9 replaced its fixed exchange rate system with a floating exchange system with bands, and began actions of foreign exchange to set a reference rate.
The kwanza immediately plunged from its previous rate of around 166 to the dollar and was trading at 214.12 today, down 22.5 percent since then.
On secondary and informal markets, BNA said the differential in the exchange rate of the kwanza to the U.S. dollar declined by 60.2 percentage points as the rate changed from 150.618 to 90.409 between Jan. 9 and Feb. 28.
In February the central bank's gross international reserves declined to US$17.482.15 billion from 17.983.76 billion in December, but this is still enough for 7.28 months of imports.
Today's meeting by the BNA's monetary policy committee is the third since the new exchange rate system was adopted and the key BNA rate, and other rates, have been maintained since the rate was raised by 200 basis points in November 2017.
Angola's inflation rate is continuing to decelerate from just over 41 percent in December 2016 and fell to 21.47 percent in February from 22.72 percent in January.
The monetary base, which became an operating variable of monetary policy in November last year, grew by 2.57 percent in February for a 0.72 percent rise year-on-year.
Credit issued rose by 3.89 percent in February, for annual growth of 8.02 percent, with BNA noting a rise credit to individuals and for construction.
The BNA's policy statement came as Angolan prosecutors on Monday charged Jose Filomeno dos Santos, son of the former president, and Valter Filipe da Silva, former central bank governor, along with four others, with attempted fraud by transferring $500 million out of the central bank to U.K. banks.
Dos Santos and da Silva are the highest profile figures to be charged since President Joao Lourenco last September took over from Jose Eduardo dos Santos, vowing to root out an endemic culture of corruption. Dos Santos had been in power for almost 38 years.
In late October last year Lourenco replaced da Silva with Jose Massano as BNA governor.
The following month Massano then raised the rate for the first time since June 2016 to tackle accelerating inflation and shifted the operational framework of monetary policy to regulate liquidity.
Earlier this month the International Monetary Fund (IMF) said Angola's economy was seeing a mild recovery and the better outlook for oil prices had opened a window of opportunity to strengthen macroeconomic policies and carry through structural reforms so the country can "realize its full potential."
"The new administration is rightly focused on restoring macroeconomic stability and improving governance," the IMF said.
IMF forecast that growth this year would accelerate to 2.25 percent from 1.0 percent last year, driven by a more efficient system of allocating foreign exchange, additional availability of foreign exchange due to higher oil prices, natural gas producing inching up toward full capacity, and improved business sentiment.
Inflation is expected to remain high and hit 24.75 percent by the end of this year, mainly due to the depreciation of the kwacha's exchange rate, IMF said.
The IMF also described BNA's tightening of monetary policy "appropriate" as it supports the new exchange rate regime, adding the pass-through of the depreciation had been contained so far.
While there are still pressures in the foreign exchange market as the backlog of purchase orders are gradually eliminated, IMF said further reforms to the allocation mechanism is required, including phasing out direct sales.
Angola's fiscal policy is aimed at reducing deficits, with the overall deficit hitting 6 percent of Gross Domestic Product in 2017 while public debt hit 64 percent of GDP.
The 2018 budget calls for reducing the deficit to 3.5 percent of GDP and higher than forecast oil prices should be used to clear domestic payment arrears and retire public debt, IMF said, adding the objective of lowering public debt to under 60 percent of GDP provided "an adequate fiscal anchor."
www.CentralBankNews.info
The National Bank of Angola (BNA) on Jan. 9 replaced its fixed exchange rate system with a floating exchange system with bands, and began actions of foreign exchange to set a reference rate.
The kwanza immediately plunged from its previous rate of around 166 to the dollar and was trading at 214.12 today, down 22.5 percent since then.
On secondary and informal markets, BNA said the differential in the exchange rate of the kwanza to the U.S. dollar declined by 60.2 percentage points as the rate changed from 150.618 to 90.409 between Jan. 9 and Feb. 28.
In February the central bank's gross international reserves declined to US$17.482.15 billion from 17.983.76 billion in December, but this is still enough for 7.28 months of imports.
Today's meeting by the BNA's monetary policy committee is the third since the new exchange rate system was adopted and the key BNA rate, and other rates, have been maintained since the rate was raised by 200 basis points in November 2017.
Angola's inflation rate is continuing to decelerate from just over 41 percent in December 2016 and fell to 21.47 percent in February from 22.72 percent in January.
The monetary base, which became an operating variable of monetary policy in November last year, grew by 2.57 percent in February for a 0.72 percent rise year-on-year.
Credit issued rose by 3.89 percent in February, for annual growth of 8.02 percent, with BNA noting a rise credit to individuals and for construction.
The BNA's policy statement came as Angolan prosecutors on Monday charged Jose Filomeno dos Santos, son of the former president, and Valter Filipe da Silva, former central bank governor, along with four others, with attempted fraud by transferring $500 million out of the central bank to U.K. banks.
Dos Santos and da Silva are the highest profile figures to be charged since President Joao Lourenco last September took over from Jose Eduardo dos Santos, vowing to root out an endemic culture of corruption. Dos Santos had been in power for almost 38 years.
In late October last year Lourenco replaced da Silva with Jose Massano as BNA governor.
The following month Massano then raised the rate for the first time since June 2016 to tackle accelerating inflation and shifted the operational framework of monetary policy to regulate liquidity.
Earlier this month the International Monetary Fund (IMF) said Angola's economy was seeing a mild recovery and the better outlook for oil prices had opened a window of opportunity to strengthen macroeconomic policies and carry through structural reforms so the country can "realize its full potential."
"The new administration is rightly focused on restoring macroeconomic stability and improving governance," the IMF said.
IMF forecast that growth this year would accelerate to 2.25 percent from 1.0 percent last year, driven by a more efficient system of allocating foreign exchange, additional availability of foreign exchange due to higher oil prices, natural gas producing inching up toward full capacity, and improved business sentiment.
Inflation is expected to remain high and hit 24.75 percent by the end of this year, mainly due to the depreciation of the kwacha's exchange rate, IMF said.
The IMF also described BNA's tightening of monetary policy "appropriate" as it supports the new exchange rate regime, adding the pass-through of the depreciation had been contained so far.
While there are still pressures in the foreign exchange market as the backlog of purchase orders are gradually eliminated, IMF said further reforms to the allocation mechanism is required, including phasing out direct sales.
Angola's fiscal policy is aimed at reducing deficits, with the overall deficit hitting 6 percent of Gross Domestic Product in 2017 while public debt hit 64 percent of GDP.
The 2018 budget calls for reducing the deficit to 3.5 percent of GDP and higher than forecast oil prices should be used to clear domestic payment arrears and retire public debt, IMF said, adding the objective of lowering public debt to under 60 percent of GDP provided "an adequate fiscal anchor."
www.CentralBankNews.info
Wednesday, February 28, 2018
Angola holds rate again after switch to floating FX regime
Angola's central bank left its benchmark BNA rate at 18.0 percent, noting the exchange rate of the euro and U.S. dollar had appreciated by 39.50 percent and 24.88 percent, respectively, against the kwanza during foreign exchange auctions in January.
The National Bank of Angola (BNA), which in January replaced its fixed exchange rate regime with a floating exchange system with bands, said the average exchange rate of the euro at the end of January was 257.39 to the kwanza compared with 184.50 at the end of 2017.
Compared with the dollar, the kwanza's rate was 207.21 end-January, down from 165.92 at the end of 2017, the fixed rate the BNA had used since 2016.
After switching its exchange rate regime on Jan. 4, the BNA on Jan. 9 conducted its first auction of foreign exchange under its new system to help determine a reference rate based on actual demand.
Today's meeting by the BNA's monetary policy meeting is the second following the adoption of the new exchange rate regime. At its policy meeting on Jan. 29, the BNA also maintained its rate after raising it by 200 basis points in November 2017.
The sale of US$945 million to commercial banks, for the purpose of maintaining the supply of consumer goods, led to a 1.51 percent decline in Gross Reserves US$17.717 billion, enough for 7.37 months of imports.
In the credit market, BNA said credit in kwanza rose 0.49 percent but on an annual basis credit contracted by 12.65 percent.
A decline in the value of exports in January from the non-oil sector lead to a 5.39 percent drop in exports from December while imports fell by 3.0 percent. But year-on-year the trade balance rose by 47.24 percent due to a 19.5 percent increase in exports and a16.3 percent fall in imports.
Angola's inflation rate eased to 22.72 percent in January from 23.67 percent in December.
www.CentralBankNews.info
The National Bank of Angola (BNA), which in January replaced its fixed exchange rate regime with a floating exchange system with bands, said the average exchange rate of the euro at the end of January was 257.39 to the kwanza compared with 184.50 at the end of 2017.
Compared with the dollar, the kwanza's rate was 207.21 end-January, down from 165.92 at the end of 2017, the fixed rate the BNA had used since 2016.
After switching its exchange rate regime on Jan. 4, the BNA on Jan. 9 conducted its first auction of foreign exchange under its new system to help determine a reference rate based on actual demand.
Today's meeting by the BNA's monetary policy meeting is the second following the adoption of the new exchange rate regime. At its policy meeting on Jan. 29, the BNA also maintained its rate after raising it by 200 basis points in November 2017.
The sale of US$945 million to commercial banks, for the purpose of maintaining the supply of consumer goods, led to a 1.51 percent decline in Gross Reserves US$17.717 billion, enough for 7.37 months of imports.
In the credit market, BNA said credit in kwanza rose 0.49 percent but on an annual basis credit contracted by 12.65 percent.
A decline in the value of exports in January from the non-oil sector lead to a 5.39 percent drop in exports from December while imports fell by 3.0 percent. But year-on-year the trade balance rose by 47.24 percent due to a 19.5 percent increase in exports and a16.3 percent fall in imports.
Angola's inflation rate eased to 22.72 percent in January from 23.67 percent in December.
www.CentralBankNews.info
Monday, January 29, 2018
Angola maintains rate as inflation decelerates
Angola's central bank left its benchmark BNA rate at 18.0 percent, saying it was paying particular attention to inflation, which rose slightly in December but declined on an annual basis.
The National Bank of Angola (BNA), which raised its rate by 200 basis points in November 2017 and then revamped its exchange rate regime on Jan. 4, added net international reserves declined by 6.64 percent in December to US$13.299.71 billion.
Angola's monthly inflation rate was 1.2 percent in December compared with 1.04 percent in the previous month and 2.04 percent in December 2016.
Year-on-year inflation in December eased to 23.67 percent from 24.7 percent.
Since 2016 the BNA had fixed the kwanza to the U.S. dollar at 166 but on the black market it often changed hands at up to 400 per dollar.
The fall in crude oil prices in mid-2014 hit the foreign exchange earnings of Africa's second largest oil producer hard, with the international reserves also declining.
After taking over as BNA governor in late October, Jose Massano moved swiftly to abandon the BNA-administered exchange rate to an exchange rate band, with a reference rate determined by auctions of foreign exchange.
On Jan. 23 the BNA held the fifth such auction, selling 81.8 million euros that were fully absorbed by 17 of 26 participating banks at weighted average selling rate of 253.706 kwanza based on a highest rate of 253.747 and the lowest rate of 253.126.
The currency sold at that auction was mainly intended for the import of raw materials, parts, accessories and manufacturing while for food, medicine and private operations, the BNA will maintain a mechanism of direct sales through commercial banks.
Against the U.S. dollar, the kwanza was quoted by banks at 203.6, down 18.5 percent from before the shift to a new exchange rate regime.
www.CentralBankNews.info
The National Bank of Angola (BNA), which raised its rate by 200 basis points in November 2017 and then revamped its exchange rate regime on Jan. 4, added net international reserves declined by 6.64 percent in December to US$13.299.71 billion.
Angola's monthly inflation rate was 1.2 percent in December compared with 1.04 percent in the previous month and 2.04 percent in December 2016.
Year-on-year inflation in December eased to 23.67 percent from 24.7 percent.
Since 2016 the BNA had fixed the kwanza to the U.S. dollar at 166 but on the black market it often changed hands at up to 400 per dollar.
The fall in crude oil prices in mid-2014 hit the foreign exchange earnings of Africa's second largest oil producer hard, with the international reserves also declining.
After taking over as BNA governor in late October, Jose Massano moved swiftly to abandon the BNA-administered exchange rate to an exchange rate band, with a reference rate determined by auctions of foreign exchange.
On Jan. 23 the BNA held the fifth such auction, selling 81.8 million euros that were fully absorbed by 17 of 26 participating banks at weighted average selling rate of 253.706 kwanza based on a highest rate of 253.747 and the lowest rate of 253.126.
The currency sold at that auction was mainly intended for the import of raw materials, parts, accessories and manufacturing while for food, medicine and private operations, the BNA will maintain a mechanism of direct sales through commercial banks.
Against the U.S. dollar, the kwanza was quoted by banks at 203.6, down 18.5 percent from before the shift to a new exchange rate regime.
www.CentralBankNews.info
Thursday, November 30, 2017
Angola raises rate 200 bps to reverse rise in inflation
Angola's central bank raised its benchmark BNA rate by 200 basis points to 18 percent, saying it needed to take this measure to reverse the inflationary process given the high level of inflation.
It is the first rate hike by the National Bank of Angola (BNA) since June 2016 and follows the appointment of a new central bank governor, Jose Massano, by the country's president in late October. Massano replaced Walter Filipe da Silva who had been governor since March 2015.
After declining all year, Angola's national inflation rate rose to 26.25 percent in October from 25.18 percent in the previous two months.
The monthly inflation rate in the province of Luana rose to 2.98 percent in October from 2.58 percent in September and 1.79 percent in October 2016 for an annual rate of 28.96 percent, with the largest increase coming from prices of health, miscellaneous goods and services, clothing and footwear, and alcoholic beverages and tobacco.
In addition to the rate hike, the bank's monetary policy committee also took a series of other policy initiatives, including adopting the monetary base in domestic currency as an operational variable for monetary policy as strict monitoring of liquidity is fundamental to the stability of prices.
While the central bank left its overnight liquidity facility at 20.0 percent, it reduced the permanent liquidity absorption facility to zero percent and will intervene with open market operations to regulated liquidity.
It also made changes to banks' mandatory reserves, with the ratio for commercial banks' customer deposits in kwanza lowered to 21.0 percent from 30.0 percent.
Excluded from this change are accounts held by the central and local governments, along with municipalities, with the ratio remaining unchanged.
In addition, banks will be able to deduct 80 percent of any credit extended to agricultural, livestock, forestry and fishery projects in calculating their mandatory reserves.
In October credit to the economy rose 0.14 percent while gross credit to the central government rose 1.84 percent, the BNA said.
www.CentralBankNews.info
It is the first rate hike by the National Bank of Angola (BNA) since June 2016 and follows the appointment of a new central bank governor, Jose Massano, by the country's president in late October. Massano replaced Walter Filipe da Silva who had been governor since March 2015.
After declining all year, Angola's national inflation rate rose to 26.25 percent in October from 25.18 percent in the previous two months.
The monthly inflation rate in the province of Luana rose to 2.98 percent in October from 2.58 percent in September and 1.79 percent in October 2016 for an annual rate of 28.96 percent, with the largest increase coming from prices of health, miscellaneous goods and services, clothing and footwear, and alcoholic beverages and tobacco.
In addition to the rate hike, the bank's monetary policy committee also took a series of other policy initiatives, including adopting the monetary base in domestic currency as an operational variable for monetary policy as strict monitoring of liquidity is fundamental to the stability of prices.
While the central bank left its overnight liquidity facility at 20.0 percent, it reduced the permanent liquidity absorption facility to zero percent and will intervene with open market operations to regulated liquidity.
It also made changes to banks' mandatory reserves, with the ratio for commercial banks' customer deposits in kwanza lowered to 21.0 percent from 30.0 percent.
Excluded from this change are accounts held by the central and local governments, along with municipalities, with the ratio remaining unchanged.
In addition, banks will be able to deduct 80 percent of any credit extended to agricultural, livestock, forestry and fishery projects in calculating their mandatory reserves.
In October credit to the economy rose 0.14 percent while gross credit to the central government rose 1.84 percent, the BNA said.
www.CentralBankNews.info
Wednesday, November 1, 2017
Angola maintains rate as new governor takes up post
Angola's central bank, whose governor was replaced last week, left its benchmark BNA rate at 16.0 percent and said it was paying particular attention to this year's trend of declining inflation.
The National Bank of Angola (BNA), which has kept its rate steady since June 2016, said inflation in the province of Luanda in September rose to 27.46 percent from 26.95 percent in August but compared with September last year, inflation was down by an annual 11.98 percentage points.
Angola's national inflation rate was steady at 25.18 percent in September and August at this year's lowest level, falling from 41.12 percent in December 2016.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
On Friday Angola's president appointed Jose Massano as new BNA governor, replacing Walter Filipe da Silva who was appointed in March 2015.
The BNA then delayed the scheduled meeting of its monetary policy committee to Nov. 1 from the originally scheduled date of Oct. 27.
In today's statement, the BNA also said credit to the economy had fallen by 0.72 percent according to preliminary data for September while gross credit to the central government had risen 1.21 percent.
The exchange rate of Angola's kwanza against the U.S. dollar was unchanged at 165.92, BNA said.
The BNA has devalued the kwanza several times in recent years and has been quoting the kwanza around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
The latest data for Angola's Gross Domestic Product show the economy contracted by an annual 4.3 percent in the third quarter of 2016 as the economy remains in recession that began in the second quarter of 2015.
www.CentralBankNews.info
The National Bank of Angola (BNA), which has kept its rate steady since June 2016, said inflation in the province of Luanda in September rose to 27.46 percent from 26.95 percent in August but compared with September last year, inflation was down by an annual 11.98 percentage points.
Angola's national inflation rate was steady at 25.18 percent in September and August at this year's lowest level, falling from 41.12 percent in December 2016.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
On Friday Angola's president appointed Jose Massano as new BNA governor, replacing Walter Filipe da Silva who was appointed in March 2015.
The BNA then delayed the scheduled meeting of its monetary policy committee to Nov. 1 from the originally scheduled date of Oct. 27.
In today's statement, the BNA also said credit to the economy had fallen by 0.72 percent according to preliminary data for September while gross credit to the central government had risen 1.21 percent.
The exchange rate of Angola's kwanza against the U.S. dollar was unchanged at 165.92, BNA said.
The BNA has devalued the kwanza several times in recent years and has been quoting the kwanza around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
The latest data for Angola's Gross Domestic Product show the economy contracted by an annual 4.3 percent in the third quarter of 2016 as the economy remains in recession that began in the second quarter of 2015.
www.CentralBankNews.info
Monday, October 2, 2017
Angola maintains rate as inflation continues to decelerate
Angola's central bank kept its benchmark BNA rate at 16.0 percent, once again saying its monetary policy committee (CPM) had taken note for the downward trajectory in inflation that began in January this year.
The National Bank of Angola (BNA) has maintained its rate since June 2016 and in August the national headline inflation rate fell for the eight consecutive month to 25.18 percent from 41.12 percent in December 2016.
Inflation as measured in the province of Luanda eased to 26.95 percent in August from 29.01 percent in July and 38.18 percent in August last year, the BNA said.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
The BNA added the LUIBOR overnight rate was 22.23 percent while 3 month and 12 month rates were at 19.62 percent and 23.27 percent, respectively.
Preliminary data for August also show that credit to the economy had fallen by 0.29 percent while gross credit to the central government had risen 2.36 percent and government deposits in the banking system had decreased 12.74 percent.
The exchange rate of Angola's kwanza against the U.S. dollar was unchanged at 165.92.
The BNA has devalued the kwanza several times in recent years and has been quoting the kwanza around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
The latest data for Angola's Gross Domestic Product show the economy contracted by an annual 4.3 percent in the third quarter of 2016 as the economy remains in recession that began in the second quarter of 2015.
www.CentralBankNews.info
The National Bank of Angola (BNA) has maintained its rate since June 2016 and in August the national headline inflation rate fell for the eight consecutive month to 25.18 percent from 41.12 percent in December 2016.
Inflation as measured in the province of Luanda eased to 26.95 percent in August from 29.01 percent in July and 38.18 percent in August last year, the BNA said.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
The BNA added the LUIBOR overnight rate was 22.23 percent while 3 month and 12 month rates were at 19.62 percent and 23.27 percent, respectively.
Preliminary data for August also show that credit to the economy had fallen by 0.29 percent while gross credit to the central government had risen 2.36 percent and government deposits in the banking system had decreased 12.74 percent.
The exchange rate of Angola's kwanza against the U.S. dollar was unchanged at 165.92.
The BNA has devalued the kwanza several times in recent years and has been quoting the kwanza around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
The latest data for Angola's Gross Domestic Product show the economy contracted by an annual 4.3 percent in the third quarter of 2016 as the economy remains in recession that began in the second quarter of 2015.
www.CentralBankNews.info
Friday, September 1, 2017
Angola maintains rate as inflation decelerates further
Angola's central bank maintained its benchmark BNA rate at 16.0 percent, saying its monetary policy committee had once again take note of the continuing downward trajectory in inflation, which began in January this year.
The National Bank of Angola (BNA), which has kept its rate steady since June 2016 when it raised it to the current level to curb inflation, also said preliminary data for July showed that credit to the economy rose by 1.75 percent from June while gross credit to the central government had dropped by 0.96 percent.
In June credit to the economy dropped 0.76 percent from May while gross credit to the central government had risen by 0.71 percent.
Angola's national inflation rate decelerated further to 27.29 percent in July from 30.51 percent in June for the seventh consecutive month of falling inflation since hitting 41.12 percent in December 2016.
Inflation, as measured in the province of Luanda, in the month of July was 1.77 percent compared with 1.58 percent in the previous month for an annual rate of 29.01 percent, down from 31.89 percent in June and 35.30 percent in July 2016, the BNA said.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
The BNA has devalued the kwanza several times in recent years and has been quoting the kwanza around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Today the kwacha was quoted at 165.9 to the dollar.
In July the LUIBOR overnight rate, Angola's interbank rate, eased to 22.37 percent from 22.40 percent in June while the 3-month rate dropped to 20.12 percent from 20.15 percent and the 12-month rate rose to 24.25 percent from 24.44 percent.
www.CentralBankNews.info
The National Bank of Angola (BNA), which has kept its rate steady since June 2016 when it raised it to the current level to curb inflation, also said preliminary data for July showed that credit to the economy rose by 1.75 percent from June while gross credit to the central government had dropped by 0.96 percent.
In June credit to the economy dropped 0.76 percent from May while gross credit to the central government had risen by 0.71 percent.
Angola's national inflation rate decelerated further to 27.29 percent in July from 30.51 percent in June for the seventh consecutive month of falling inflation since hitting 41.12 percent in December 2016.
Inflation, as measured in the province of Luanda, in the month of July was 1.77 percent compared with 1.58 percent in the previous month for an annual rate of 29.01 percent, down from 31.89 percent in June and 35.30 percent in July 2016, the BNA said.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
The BNA has devalued the kwanza several times in recent years and has been quoting the kwanza around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Today the kwacha was quoted at 165.9 to the dollar.
In July the LUIBOR overnight rate, Angola's interbank rate, eased to 22.37 percent from 22.40 percent in June while the 3-month rate dropped to 20.12 percent from 20.15 percent and the 12-month rate rose to 24.25 percent from 24.44 percent.
www.CentralBankNews.info
Thursday, June 1, 2017
Angola holds rate as inflation continues to decelerate
Angola's central bank left its benchmark BNA rate at 16.0 percent, with its monetary policy committee "noting that year-on-year inflation continued on its downward trajectory beginning in January 2017."
The National Bank of Angola (BNA) has maintained its rate since June 2016 when it raised it to the current level to curb rising inflation. Last year the BNA raised its key rate 500 basis points.
Angola's inflation rate, as measured by consumer prices in the province of Luanda, eased to 36.33 percent in April from 37.86 percent in March, according to the BNA.
Nationally, inflation eased to 34.8 percent in April from 36.52 percent in March for the fourth consecutive month of declining inflation since December 2016 when inflation hit 41.12 percent.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
The National Bank of Angola (BNA) has maintained its rate since June 2016 when it raised it to the current level to curb rising inflation. Last year the BNA raised its key rate 500 basis points.
Angola's inflation rate, as measured by consumer prices in the province of Luanda, eased to 36.33 percent in April from 37.86 percent in March, according to the BNA.
Nationally, inflation eased to 34.8 percent in April from 36.52 percent in March for the fourth consecutive month of declining inflation since December 2016 when inflation hit 41.12 percent.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
The BNA has devalued the kwanza several times in recent years and has been quoting the kwanza around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Today the BNA said the average exchange rate of the kwanza in the primary foreign exchange market was unchanged at 165.91 per dollar and the central bank had sold the equivalent of US$815.27 million to commercial agents in April, down from $2.192.57 billion in March.
Credit to the economy had risen 0.28 percent in April while government deposits in the banking system had decreased 5.99 percent, the BNA said in a statement issued today following a meeting of its monetary policy committee on May 30.
The next meeting of the policy committee is June 30.
Saturday, April 29, 2017
Angola maintains rate as inflation decelerates further
Angola's central bank maintained its benchmark BNA rate at 16.0 percent, along with its other key rates, and inflation is continuing to follow the downward trajectory that began in January.
The National Bank of Angola (BNA) has kept its key rate steady since June last year when it raised it to the current level to curb accelerating inflation. In 2016 the BNA rate was raised 500 basis points.
The BNA's monetary policy committee (CPM) met on April 28 and its next meeting is scheduled for May 30.
Angola's inflation rate, as measured by consumer prices in the province of Luanda, eased to 37.86 percent in March, down from 39.45 percent in February, according to the BNA.
Nationally, inflation eased to 36.52 percent in March, the third consecutive month of declining inflation since December 2016 when inflation hit 41.12 percent.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
The BNA devalued the kwanza several times in recent years and has been quoting the kwanza at around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Today it said the average exchange rate of the kwanza was steady at 165.91 to the U.S. dollar.
The BNA sold US$2.193 billion to commercial agents through banks in March, up from $798 million in the previous month.
www.CentralBankNews.info
The National Bank of Angola (BNA) has kept its key rate steady since June last year when it raised it to the current level to curb accelerating inflation. In 2016 the BNA rate was raised 500 basis points.
The BNA's monetary policy committee (CPM) met on April 28 and its next meeting is scheduled for May 30.
Angola's inflation rate, as measured by consumer prices in the province of Luanda, eased to 37.86 percent in March, down from 39.45 percent in February, according to the BNA.
Nationally, inflation eased to 36.52 percent in March, the third consecutive month of declining inflation since December 2016 when inflation hit 41.12 percent.
Angola's inflation rate began accelerating in early 2015 as the fall in crude oil prices dented government revenue and foreign exchange earnings, weakening the kwanza's exchange rate and pushing up import prices and inflation.
The BNA devalued the kwanza several times in recent years and has been quoting the kwanza at around 165 per U.S. dollar since mid-April 2016. In January last year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Today it said the average exchange rate of the kwanza was steady at 165.91 to the U.S. dollar.
The BNA sold US$2.193 billion to commercial agents through banks in March, up from $798 million in the previous month.
During the same period, the LUIBOR overnight rate was unchanged at 23.67 percent while 3 and 12-month rates were 21.05 percent and 25.75 percent, respectively.
Preliminary data also showed that credit issued to the economy in March fell by 0.75 percent from the previous month while gross credit to the central government rose by 0.98 percent and government deposits in the banking system declined by 2.59 percent.www.CentralBankNews.info
Tuesday, January 31, 2017
Angola keeps key rate steady while inflation accelerates
Angola's central bank left its benchmark BNA rate seasonal effects at 16.0 percent, again saying it is paying particular attention to the rise in inflation, which it attributed to seasonal factors.
The National Bank of Angola (BNA), which raised its rate 500 basis points last year - most recently in June - to curb inflation, added its monetary policy committee had also taken note of the trend of declining monetary indicators.
Angola's inflation rate rose to 41.95 percent in December - the highest since June 2004 - from 41.15 percent in November, with prices for food and non-alcoholic beverages, miscellaneous goods, and apparel and footwear contributing most to the rise in inflation.
Angola's inflation rate has been accelerating since early 2015 as the fall in crude oil prices hit government revenue and foreign exchange earnings, weakening the kwanza.
The central bank has devalued the kwanza several times in recent years and has been quoting the kwanza at around 165 per U.S. dollar since mid-April 2016.
In January 20916 the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Angola's LUIBOR overnight rate, also rose to 23.35 percent from 22.65 percent while credit to the economy in December rose by 1.62 percent.
But the restricted monetary base contracted by 2.82 percent in December while the M2 aggregate fell by 0.15 percent for an annual rise of 13.03 percent, the BNA said.
The central bank added that commercial banks acquired $US1.947 billion on the foreign exchange market in December, of which $1.486 was from the BNA, an annual rise of 49.31 percent.
Angola's banks last week asked the government for financial assistance due to liquidity shortage amid rising bad debts, slowing business and lower government spending.
Revenue from oil accounts for almost all Angola's foreign exchange earnings and the fall in crude oil prices since mid-2014 has curtailed economic activity.
www.CentralBankNews.info
The National Bank of Angola (BNA), which raised its rate 500 basis points last year - most recently in June - to curb inflation, added its monetary policy committee had also taken note of the trend of declining monetary indicators.
Angola's inflation rate rose to 41.95 percent in December - the highest since June 2004 - from 41.15 percent in November, with prices for food and non-alcoholic beverages, miscellaneous goods, and apparel and footwear contributing most to the rise in inflation.
Angola's inflation rate has been accelerating since early 2015 as the fall in crude oil prices hit government revenue and foreign exchange earnings, weakening the kwanza.
The central bank has devalued the kwanza several times in recent years and has been quoting the kwanza at around 165 per U.S. dollar since mid-April 2016.
In January 20916 the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
Angola's LUIBOR overnight rate, also rose to 23.35 percent from 22.65 percent while credit to the economy in December rose by 1.62 percent.
But the restricted monetary base contracted by 2.82 percent in December while the M2 aggregate fell by 0.15 percent for an annual rise of 13.03 percent, the BNA said.
The central bank added that commercial banks acquired $US1.947 billion on the foreign exchange market in December, of which $1.486 was from the BNA, an annual rise of 49.31 percent.
Angola's banks last week asked the government for financial assistance due to liquidity shortage amid rising bad debts, slowing business and lower government spending.
Revenue from oil accounts for almost all Angola's foreign exchange earnings and the fall in crude oil prices since mid-2014 has curtailed economic activity.
www.CentralBankNews.info
Thursday, December 29, 2016
Angola holds rate, higher telecoms pushes up inflation
Angola's central bank maintained its benchmark BNA rate at 16.00 percent but said its monetary policy committee was paying particular attention to an acceleration of inflation in November, which was due to the an increase in administered telecommunications prices.
The National Bank of Angola (BNA), which has raised its rate by 500 basis points this year to curb inflation, added it encouraged economic agents to "redouble" their efforts in helping price stability.
Angola's inflation rate rose by 2.13 percent in the month of November, up from October's 1.79 percent rise, with communications contributing with 0.57 percentage points.
On an annual basis, November inflation rose to a new 2016 high of 41.15 percent from 40.04 percent in October.
In the same period the Luibor overnight rate rose to 22.65 percent from 14.26 percent while 3-month and 12-month rates were at 16.04 percent and 18.15 percent, respectively, the central bank said in a statement issued today following a meeting of its policy committee on Dec. 22.
The BNA added that credit issued to the economy declined by 0.94 percent in November while gross credit to the central government rose by 1.33 percent.
The central bank also said the average exchange rate of the kwanza was an unchanged 165.90 to the U.S. dollar, with commercial banks acquiring US$1.304 billion, an increase of 3 percent.
The central bank has devalued the kwanza several times in recent years and has been quoting the kwanza at around 165 per U.S. dollar since mid-April.
In January this year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
On Dec. 9 BNA Governor Valter Filipe da Silva was quoted as saying the central bank had no need to devalue the kwanza at the moment but work to lessen the gap between the formal and informal exchange rates.
Angola, Africa's second largest oil exporter, has been hit hard by the fall in crude oil prices, which has also led to a shortage of foreign exchange.
www.CentralBankNews.info
The National Bank of Angola (BNA), which has raised its rate by 500 basis points this year to curb inflation, added it encouraged economic agents to "redouble" their efforts in helping price stability.
Angola's inflation rate rose by 2.13 percent in the month of November, up from October's 1.79 percent rise, with communications contributing with 0.57 percentage points.
On an annual basis, November inflation rose to a new 2016 high of 41.15 percent from 40.04 percent in October.
In the same period the Luibor overnight rate rose to 22.65 percent from 14.26 percent while 3-month and 12-month rates were at 16.04 percent and 18.15 percent, respectively, the central bank said in a statement issued today following a meeting of its policy committee on Dec. 22.
The BNA added that credit issued to the economy declined by 0.94 percent in November while gross credit to the central government rose by 1.33 percent.
The central bank also said the average exchange rate of the kwanza was an unchanged 165.90 to the U.S. dollar, with commercial banks acquiring US$1.304 billion, an increase of 3 percent.
The central bank has devalued the kwanza several times in recent years and has been quoting the kwanza at around 165 per U.S. dollar since mid-April.
In January this year the central bank let the kwanza ease to around 155 from around 135, the rate it had targeted since September 2015.
On Dec. 9 BNA Governor Valter Filipe da Silva was quoted as saying the central bank had no need to devalue the kwanza at the moment but work to lessen the gap between the formal and informal exchange rates.
Angola, Africa's second largest oil exporter, has been hit hard by the fall in crude oil prices, which has also led to a shortage of foreign exchange.
www.CentralBankNews.info
Wednesday, November 30, 2016
Angola holds rate and rules out devaluation of kwanza
Angola's central bank maintained its benchmark BNA rate at 16.00 percent and said it was committed to preserve the value of the national currency, "which is why there will be no devaluation of the kwanza."
The National Bank of Angola (BNA), which has raised its rate by 500 basis points this year to curb inflation, said it would continue to exchange 165.8 kwanza per U.S. dollar "so there is no need for market operators to change the prices of goods and services."
The BNA also said it taken note of a deceleration in inflation due to its control of liquidity and an increases in the supply of goods and services.
Angola's inflation rate rose to 40.4 percent in October, the highest rate since July 2004, from 39.4 percent in September, continuing the upward trend since 2015.
The fall in crude oil prices from mid-2014 has lead to a shortage of foreign exchange in Angola, undermined government revenue and hit the exchange rate of the kwanza.
The central bank, which has devalued the kwanza several times in the last year, said commercial banks had purchased US$1.268 billion in October, a decrease of 9.24 percent.
In October credit to the economy rose by 0.42 percent while gross credit to the central government rose 0.82 percent.
In September the International Monetary Fund (IMF) forecast 1.25 percent output growth in 2017, up from zero growth this year, due to a recovery in the non-oil sector from higher public spending.
Inflation was forecast to reach 45 percent by the end of the year before declining to 20 percent next year as tight monetary conditions and a stable kwanza supports disinflation.
The IMF also said monthly inflation had started to subside and while sales of foreign exchange had helped ease pressures on the market, it added that greater exchange rate flexibility, along with supporting macroeconomic policies, would be essential to maintain the exchange rate, prevent a misallocation of resources and accelerate growth.
www.CentralBankNews.info
The National Bank of Angola (BNA), which has raised its rate by 500 basis points this year to curb inflation, said it would continue to exchange 165.8 kwanza per U.S. dollar "so there is no need for market operators to change the prices of goods and services."
The BNA also said it taken note of a deceleration in inflation due to its control of liquidity and an increases in the supply of goods and services.
Angola's inflation rate rose to 40.4 percent in October, the highest rate since July 2004, from 39.4 percent in September, continuing the upward trend since 2015.
The fall in crude oil prices from mid-2014 has lead to a shortage of foreign exchange in Angola, undermined government revenue and hit the exchange rate of the kwanza.
The central bank, which has devalued the kwanza several times in the last year, said commercial banks had purchased US$1.268 billion in October, a decrease of 9.24 percent.
In October credit to the economy rose by 0.42 percent while gross credit to the central government rose 0.82 percent.
In September the International Monetary Fund (IMF) forecast 1.25 percent output growth in 2017, up from zero growth this year, due to a recovery in the non-oil sector from higher public spending.
Inflation was forecast to reach 45 percent by the end of the year before declining to 20 percent next year as tight monetary conditions and a stable kwanza supports disinflation.
The IMF also said monthly inflation had started to subside and while sales of foreign exchange had helped ease pressures on the market, it added that greater exchange rate flexibility, along with supporting macroeconomic policies, would be essential to maintain the exchange rate, prevent a misallocation of resources and accelerate growth.
www.CentralBankNews.info
Thursday, November 3, 2016
Angola maintains rate, says inflation trending lower
Angola's central bank left its key rate, the BNA rate, at 16.0 percent, saying it had taken note of the "trend of price deceleration in the economy and the prospect of maintaining exchange rate stability."
The National Bank of Angola (BNA) has raised its rate by 500 basis points this year to curb inflation.
In September Angola's monthly inflation rate was 2.14 percent, down from 3.30 percent in August, with the BNA attributing this to increased supply of food and lower demand.
On an annual basis, September inflation accelerated to a 2016-high of 39.44 percent from 38.18 percent.
During September credit to the economy rose by 0.80 percent, the BNA said, adding that gross credit to the central government rose 0.18 percent while deposits by the government in the banking system contracted by 1.80 percent.
www.CentralBankNews.info
The National Bank of Angola (BNA) has raised its rate by 500 basis points this year to curb inflation.
In September Angola's monthly inflation rate was 2.14 percent, down from 3.30 percent in August, with the BNA attributing this to increased supply of food and lower demand.
On an annual basis, September inflation accelerated to a 2016-high of 39.44 percent from 38.18 percent.
During September credit to the economy rose by 0.80 percent, the BNA said, adding that gross credit to the central government rose 0.18 percent while deposits by the government in the banking system contracted by 1.80 percent.
www.CentralBankNews.info
Wednesday, October 5, 2016
Angola holds BNA rate as August inflation slows slightly
Angola's central bank left its benchmark BNA rate at 16.0 percent, noting the slowdown in August inflation due to an increase in the supply of food and restrained demand.
The National Bank of Angola (BNA), which has raised its rate by 500 basis points this year in an effort to curb inflation, encourage savings and reduce the need for foreign exchange, added that it had also taken note of the deceleration in money supply.
Angola's monthly inflation rate in August eased to 3.30 percent from July's 4.04 percent but on an annual basis it accelerated to 38.18 percent in August from 35.3 percent in July.
The BNA said the restricted monetary base grew by 1.91 percent in August and while money supply was up by an annual 22.17 percent, in real terms it represented a contraction.
Angola is suffering from an acute shortage of foreign exchange due to the fall in crude oil prices and the central bank has devalued the kwanza several times in the last year.
Today the kwanza was trading at 165.7 to the U.S. dollar compared with 135.2 at the start of the year.
The National Bank of Angola (BNA), which has raised its rate by 500 basis points this year in an effort to curb inflation, encourage savings and reduce the need for foreign exchange, added that it had also taken note of the deceleration in money supply.
Angola's monthly inflation rate in August eased to 3.30 percent from July's 4.04 percent but on an annual basis it accelerated to 38.18 percent in August from 35.3 percent in July.
The BNA said the restricted monetary base grew by 1.91 percent in August and while money supply was up by an annual 22.17 percent, in real terms it represented a contraction.
Angola is suffering from an acute shortage of foreign exchange due to the fall in crude oil prices and the central bank has devalued the kwanza several times in the last year.
Today the kwanza was trading at 165.7 to the U.S. dollar compared with 135.2 at the start of the year.
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