Economists call for measures to prevent the kwanza from falling

2023-05-24 12:56:15

Angolan economists call for strategies to control inflation and the creation of more products to combat the fall in the kwanza, while also defending measures by the National Bank of Angola (BNA).

These proposals come after the BNA governor said in Luanda on Monday, the 22nd, that Angola had lost 40 percent of its foreign exchange earning capacity, a fact that put the kwanza under pressure.

“If we had to intervene at this point to maintain exchange rates, international reserves would have already fallen by around one billion dollars, an exercise that would cause other damage to the economy, including its external solvency”, said José de Lima Massano.

With the reduction in the ability to collect foreign currency, the euro rises to 63 thousand kzs and the dollar to 60 against 51 and 53 thousand in the last three months, respectively.

For economist Nataniel Fernandes, the lack of products for Angola to sell abroad is at the root of this inflation.

“This unbalanced balance of payments has to do with how much we sell abroad and how much we seek abroad”, emphasizes Fernandes who recommends “welcoming the demographic increase more so that exports can really be competitive with the necessary quality and good price, make other countries look for us”.

Fernandes adds that the situation will continue for a longer time.

“Efforts are being made but the necessary effects have not been achieved, the population is growing and needs are also increasing”, he concludes.

Economist Mário Bernardo, on the other hand, says that the BNA needs to continue to adopt “concrete measures to stop the depreciation of the Kwanza and the lack of foreign currency”.