africa Angola Banking Currency Economy Finance

Angola: Foreign exchange market with feeble functioning

The Angolan foreign exchange market has always been under restructuring and operating in a feeble manner, whether in good or tough periods of the country’s economy.

This was said on Monday, in Luanda, by the economist Gaspar Júnior, underscoring that the fragilities of the country’s foreign exchange market has to do with the lack of elements in the structure of the real financial market such as in the banking system and the Angola Securities Exchange (Bodiva), which operates atypically.

“The true foreign exchange market should not have as main negotiation component public debt securities, but negotiate other financial assets, such as the agricultural futures exchange, aiming at boosting the country’s agricultural activity”, said the expert.

Gaspar Júnior considered the Angolan informal market a cyclical and active process that practically started in 1991/92 with the emergence of foreign currency street sellers in Luanda.

Despite the scepticism in relation to the floating foreign exchange rate system adopted this year by the Angolan Reserve Bank (BNA), the expert believes in the possibility that from this measure the net international reserves of the country could be protected in short-term.

However, he also defended the need for a rapid investment in the production of goods and boost local services to avoid recurrent problems in the national financial market.

Source: Angop

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