Currency conversion agreement to be suspended

December 1, 2015, 4:36am

By the Villager Newspaper 

Bank of Namibia Governor, Ipumbu Shiimi said today at a press conference that as of the third of December the currency conversion agreement between the Bank of Namibia and Banco National de Angola will be suspended.

Shiimi said there agreement had a number of technical glitches that needed to be addressed through the two central banks made a decision to pave way for a new agreement, adding the new agreement will come into effect on the 21st of December. The suspension is set to ensure that the new agreement slides in without any unfinished, pending issues.

“In light of the above and as part of the commitment by the two Central Banks to ensure the continuation of this agreement, it was resolved to implement the alternative mechanism which is provided for in the Main Agreement. In preparation to implement the new mechanism, the two Central Banks agreed to temporarily suspend the implementation of the Currency Conversion Agreement effective from 2 December 2015. This means that there would be no further exchange of Angola Kwanzas in Namibia,” Shiimi explained.

He said the new mechanism entails that the Bank of Namibia will issue the Namibia Dollars to Banco Nacional de Angola and Banco Nacional de Angola will then facilitate currency exchange at commercial banks and Bureau de Changes in Santa Clara, Angola.

“This means that Namibians who wish to convert their Namibia Dollars into Angolan Kwanzas or Angolans who wish to convert their Kwanzas into Namibia Dollars will be able to do so at commercial banks in Angola. Further, this arrangement remains beneficial for trade promotion and facilitation between the two countries and will continue to strengthen economic relations at the two border towns,” he said.