The National Bank of Angola (NBA) has carried out a euro currency sale using funds earmarked just a month ago for import letters of credit (L/Cs).

The EUR 100 million auction was also peculiar for closing without the exchange rate of the euro against the kwanza changing, the central bank said in a statement.

Change of mind

The EUR 100 million sold by NBA was intended to be used to open import L/Cs to buy essential goods with raw materials a priority.

In June, NBA governor José de Lima Massano said that L/Cs should be the preferred financial instrument for Angola's international traders (DC World News, 25 June 2018).

Additional sale

The central bank has now also said it has sold an additional EUR 26.4 million to cover miscellaneous goods operations, focusing on the agriculture, fisheries and manufacturing sectors.

Settlement could be in the form of L/Cs, remittances and documentary collections, as well as advance payments up to a maximum amount of US$25,000.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.