Angola: BNA wants sustainable monetary policy

Luanda – Angola cannot continue to have an economic and financial system in which the foreign currencies of commercial banks and companies are the country’s foreign reserves, said on Monday the governor of the National Reserve Bank of Angola (BNA), Valter Filipe da Silva.

Valter Filipe da Silva considered unsustainable and dangerous the current mechanism of monetary policy, in which the Central Bank makes available weekly the foreign currencies for the operation of the companies and banks, thus undermining the future of the country, when using the foreign reserves.

“The reserve is saving, it is to create stability. We have to make this correction with an exchange policy, geared to domestic production, to increase agriculture, industry and increase exports”, he defended.

The governor said that what is normal in a market economy is the banking with the companies themselves to create the financial flow of the foreign currency, with the Central Bank playing the role of regulator, intervening only in exceptional situations when necessary.

“We have an unsustainable, dangerous monetary policy mechanism that undermines the future, because what is normal in a market economy is that the banks, the companies themselves are the ones who make the financial flow of the foreign currencies and the central bank intervenes in the system, sells foreign currencies in exceptional situations when necessary “, he said.

According to him, in the case of Angola, it contrasts with what is traditional in international banking, because in Angola it is the Central Bank that regularly avails foreign currencies to commercial banks and they pass on the value to the importing companies.

“Angola’s first problem is the exchange rate issue. We cannot have a country where the foreign currencies of banks and companies are foreign reserves of the country”, he said.

Source: Angola Press News Agency