Angola Central Bank Says Will Not Defend kwanza “At All Costs”

Angola’s central bank will not defend the kwanza “at all costs” and it does not expect abrupt movements in the currency despite lower oil prices sapping U.S. dollar supply, the central bank governor said. 
“The first mission of the central bank is not to defend at all costs the Angolan national currency,” Jose Pedro de Morais said in remarks made late on Tuesday to journalists.
Amilcar Silva, President of Angola´s Commercial Bank Association, told Reuters the economy was in the throes of an “exchange crisis” because of the foreign currency shortage. 
Angola’s central bank devalued the kwanza by about six percent against the dollar this month, a move analysts said was aimed at stimulating foreign currency inflows eroded by falling global oil prices 
Angola is Africa’s second-largest crude producer and President Jose Eduardo dos Santos asked China for a two-year moratorium on debt repayments, state media reported last week, to shore up public finances hit by the oil price slump.

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