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Angola foreign-exchange reserves drop US$7.3B between 2016 and 2017

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The Net Foreign-Exchange Reserves of Angola dropped USD 7.3 billion in one year, by moving from USD 20.8 billion to USD 13.5 billion between December 2016 and December 2017

Currently, the Net Foreign-Exchange Reserves are of USD 11.6 billion, representing a decrease of USD 1.9 billion since the beginning of the present year.

The information was given last Thursday, in Luanda, by the State minister for Economic and Social Development, Manuel Nunes Júnior, at a press conference that served for the presentation of the assessment report, for the third quarter of 2018, on the country’s Macroeconomic Stabilisation Programme.

He went on to explain that although the Net International Reserves are important elements in the external credibility of the country, they are not National Treasury Reserves, therefore they cannot be used to tackle current expenses of the state, such as the payment of salaries of the Civil Service.

On the occasion, Manuel Nunes Júnior disclosed that the financial amount in the Treasury Account in foreign currency changed from USD 15.8 billion in 2013 to USD 6.9 billion in 2017, representing a reduction of about USD 8.8 billion.

Between 2013 and 2017 it was recorded a steep fall on the total revenues in the National Treasury, which was not followed by a proportional reduction in expenditure.

Such fall in National Treasury revenues brought about systematic fiscal deficits which were financed through internal and external loans.

With the systematic deficit, the Executive increased its debt levels, which moved from 30 per cent of the GDP in 2013 to 79 per cent of the GDP in 2017.

So, in order to change the debt levels, in Januray 2018 the new Executive passed a Macroeconomic Stabilisation Programme, which includes measures to reduce the fiscal debt.

In view of such measures, Manuel Nunes Junior informed that the fiscal deficit for this year will go down to 0.4% of the GDP against the 6.2% in 2017 and that there will be a fiscal surplus in 2019 of about 1.5 per cent.

Source: Angop

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