Money in Angola
Angola - Money
Central Bank keeps rates unchanged but boosts liquidity
The Monetary Policy Committee of the National Bank of Angola (BNA) moved forward its scheduled meeting by 20 days to 7 May. At the meeting, the Bank kept the basic reference rate at 15.50%. However, the Bank did activate the overnight lending facility of up to 100 billion kwanza and included large companies in the public securities discount facility with a limit of 100 billion kwanza; the facility was initially intended for SMEs only.
The decision came amid a deteriorating outlook for the Angolan economy and increasing price pressures. Inflation rose to an 18-monht high of 19.0% in March amid continued kwanza depreciation due to the oil price crash; as such, lowering the interest rate could have fueled greater depreciation and thereby stoked price pressures further. With limited room to cut rates, the steps taken to boost liquidity are aimed at supporting private-sector activity.
Looking ahead, although the Bank could come under greater pressure to ease its monetary policy stance given weak economic activity, currency depreciation and elevated price pressures will limit room for maneuver. As such, our panelists see the policy rate unchanged this year. Moreover, the BNA may need to intervene in the foreign exchange market to stem the kwanza’s depreciation.
The next monetary policy meeting is scheduled for 24 July.
FocusEconomics panelists project the policy rate to end 2020 at 15.50% and 2021 at 14.56%.
Angola - Money Data
|Money (annual variation in %)||11.8||14.4||4.1||20.4||30.2|
5 years of economic forecasts for more than 30 economic indicators.
|Exchange Rate||479.0||0.0 %||Jan 01|
|Stock Market||0.1||0.0 %||Jan 07|
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September 21, 2020
On average, Angola’s Cabinda crude oil sold at USD 45.4 per barrel (pb) in August, up from July’s USD 44.3 pb, as demand and supply conditions continued to improve.
September 21, 2020
Consumer prices rose 2.00% in August over the previous month, accelerating from July's 1.83% rise.
August 24, 2020
On 21 August, the Angolan kwanza traded at AOA 589.0 per USD. This marked a 5.4% month-on-month depreciation, while the currency was down a staggering 38.9% year-on-year and 18.7% year-to-date. The steep depreciation reflected the twin impact of Covid-19 and low oil prices, which are dealing a blow to government finances and hurting investor sentiment.
August 19, 2020
On average, Angola’s Cabinda crude oil sold at USD 44.3 per barrel (pb) in July, up from June’s USD 41.1 pb, as demand and supply conditions continued to improve.
August 12, 2020
Consumer prices in the Luanda province increased 1.83% in July over the previous month, accelerating from the 1.70% increase recorded in June.