National Bank of Angola issued the following announcement on May 14.
Currently, the oil sector accounts for more than 95% of total exports and 20% of Angola’s Gross Domestic Product (GDP). This situation leads to the Angolan economy being vulnerable to external shocks, caused by the volatility of the oil price.
In addition, the country has a strong external dependence on the supply of goods and services (imports), mainly of industrial and food products, putting pressure on the levels of international reserves.
In general, international reserves are designed to protect the economy from adverse situations on external accounts and to contribute to the stability of the national currency.
Thus, international reserves are a good analytical tool for observing various economic phenomena. A low level of international reserves may cause uncertainties to resident and non-resident economic operators regarding the convertibility of their investments in the country in foreign currency and to raise doubts about the possibility of fulfilling external commitments. These uncertainties can lead to increased demand for hard currency, reducing the value of the national currency.
The National Bank of Angola (BNA), as a Foreign Exchange Authority, has the duty to ensure the maintenance of an adequate level of International Reserves to guarantee the country’s external solvency and the protection of the national economy.
Taking into account the current context of development of the national economy, the National Bank of Angola will hold, on May 22, 2019, at 8:00 am a conference on “Sustainability of International Reserves”, which will bring together several national and international specialists to address best practices in international reserve management.
Original source can be found here.
