A foreign exchange law in Angola had halved the amount of dollars auctioned by the central bank since June as the country considered letting its currency trade on international markets, a central bank official said.
The Banco de Nacional de Angola said the amount sold at auctions had fallen to $200 million a week from $400 million in June.
Oil companies were required to pay some suppliers in the kwanza currency since July 1, Antonio Andre Lopes, a vice-governor of the bank, said.
Africa’s second-biggest oil producer passed a law last year that may funnel $25 billion a year through the $116-billion economy by requiring foreign-owned oil companies to pay taxes in kwanzas since May and domestic suppliers in the currency from last month.
The measure had boosted the supply of kwanzas in Angola’s market, Lopes said.
“There’s a high supply of foreign currency with the oil companies obligated to pay in kwanzas after exchanging dollars at the banks,” Lopes said. “We’re in a process of dedollarization of the economy.”
While a date had yet to be selected, the law was a step toward allowing free trade in the kwanza, the official said.
“There is some pressure to make the kwanza a traded currency,” Lopes said.
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