Kwanza Norte, Angola, Nov. 20, 2024 (Lusa) - The governor of the National Bank of Angola has said that the relative stability of the nation's currency, the kwazna, should continue until the end of the year, helped by the slowdown in consumer price inflation in the country.
Manuel Tiago, who was speaking after a meeting of the Monetary Policy Committee - the last scheduled this year - said that the evolution of prices and the performance of economic activity allow him to foresee a preservation of the value of the kwanza.
"Looking at what has been the performance of national economic activity, which allows us to foresee a growth rate of around four per cent in 2024 and also the slowdown in the pace of price growth in the economy, all of this will naturally contribute to a greater, or at least a preservation of the value of the national currency.
He also pointed out that, compared to last year, when the kwanza depreciated by almost 40% against the dollar, in 2024 the depreciation was only 9%.
"We think that the relative stability of the exchange rate so far will continue until the end of the year," he said. "And from there we'll be able to better predict what will happen next year in 2025."
The BNA governor recalled that bank's mission relates to price stability in the economy, with a view to maintaining the stability of the kwanza, and emphasised that price stability will only be possible through a substantial increase in the production of goods and services, especially those that are in surplus and can therefore be exported, bringing foreign currency into the country.
"When there is a balance between what we export and what we import, then we will have stability in the national currency as a result of the fundamentals of the economy itself," he stressed.
Asked about Angola's having been added to the grey list of the FATF (Financial Action Task Force) - an intergovernmental organisation set up in 1989 on the initiative of the G7 to combat money laundering - he stressed that the effort made by the authorities had been recognised, as they had managed to resolve most of the deficiencies identified by the FATF, leaving only 17 unresolved that will be the subject of a government action plan.
He also pointed out that Angola's banking sector had performed above the average of other sectors and that, in terms of the financial system, the focus with regard to money laundering was essentially on non-banking financial institutions, which will be monitored by the supervisors, adding that relations between Angola's banks and their foreign counterparts will remain the same.
RCR/ARO // ARO.
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