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Fri, 04 Mar 2016 17:45 - Updated Fri, 04 Mar 2016 17:45

Angola: Economic crisis tops debate at Parliament

Luanda - The 5th specialized Commission of National Assembly, Economic Commission of Cabinet Council and the managers of commercial banks discussed Friday the economic crisis.

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Edeltrudes Costa, minister of State and head of Civil Affairs of the President of Republic

Photo: Lucas Neto/Arquivo

Among the matters, the participants analysed the reduction of foreign currency, the devaluation of the local currency (kwanza), the temporary increase in domestic prices and pay external debt.

During the meeting, the incumbents of the Executive power answered concerns by MPs on the policies outlined by Government to halt economic crisis, diversification of economy and ease the pressure on the foreign exchange market.

Speaking of the current macro-economic reality of the country, the governor of the National Reserve Bank of Angola (BNA), José Pedro de Morais, acknowledged that the country became poorer due to the new reality.

He clarified that the oil price fall, the main export product (standing about 95 percent), decreased the inflow of foreign currency into the country.

According to him, this situation also impacted on the availability of foreign currency to tackle the transactions with foreign countries, at the level of the State and of private companies.

The governor said that the country has sharply recorded an imbalance in the foreign exchange market since 2015.

According to him, this situation has exerted significant pressure on exchange rate and depreciation of the kwanza, the Angolan national currency.

The official said that in 2015 the country had 40 percent less foreign exchange resources, compared to 2014, and this year it is expected to get 50 percent less currency than in 2015.

In above period, he explained, the difference between the exchange rates of the formal and informal markets increased sequentially, standing at around 66.7 percent at the end of February 2016.

José Pedro de Morais said that various measures have been adopted along 2015, both monetary and in term of exchange rates, but he called for strict intervention in the market to ensure the preservation of the currency value.

The BNA governor put the decreased accumulation of foreign exchange reserves at 24 percent.

According to the official, the  decrease owed to the export value that stood at 72 percent between June 2014 and January 2016.

In turn, the Finance minister, Armando Manuel, said despite the difficult economic environment

it is still unwise to speak of a budget review, although this may be an option should the circumstances prove necessary.

During the meeting, ministers of Economy, Trade and Planning also clarified on the ongoing policies in their sectors focused on combat the current economic crisis.

The delegation of the Economic Commission of Cabinet Council was headed by the Minister of State and Chief of Civil Affairs of the President of Republic, Edeltrudes Costa.

Tags Angola   Economy  

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