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Angolan Central Bank bans foreign currency loans by banks

June 17, 2011‐ Angola

Banco Nacional de Angola, the central bank of Angola, has banned banks from giving loans in foreign currency. This decision is taken in order to limit the use of dollar in the economy. With this, financial institutions are expressly forbidden to realize credit operations, by disbursement in foreign currency of any term, the bank said.

The bank however gave an exception. The Government and businesses who have proven revenues and receivables in foreign currencies are exempted.

The central bank is attempting to increase the use of local currency – the Kwanza. Readers may recall the bank has capped foreign currency purchases by residents at $5,000 and instructed commercial banks to value 80% of their capital in Kwanza by June 2012. Oil exports are a key revenue for Angola as a country. Angola has earned $48.6 billion from oil exports in 2010 and $20 billion of crude exported was to China.

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