Namibia/Angola central banks still buying each other’s currencies … inspite of a failed currency conversion agreement

01 Jul 2018 18:10pm

Although the Kwanza deal between Namibia and Angola culminated into disaster, deputy central bank governor, Ebson Uanguta said both central banks still have an agreement to buy each other’s currencies in bulk to dispose into commercial banks and bureau de change for distribution to citizens.

Speaking to members of the media last week where the bank officially announced Angola’s final payment of US$51.1 million made on June the 22nd of this year, Uanguta said this new currency purchase agreement has only been done once.

“It’s a bit unfortunate that that arrangement was only utilised once by the Banco Nacional De Angola (BNA), that was in December 2015 when they bought N$5 million and since that time nothing was bought but still the agreement is in place.”

“There is nothing that constraints that side or this side to buy our respective currencies and distribute it in our different jurisdictions especially at the border towns of Santa Clara and Oshikango,” he said.

Uanguta said the central bank was delighted that the debt repayment has been concluded in a spirit of mutual trust and cooperation made possible by the support of President Hage Geingob, governments of both countries and people.

“Equally, the bank of Namibia thanks the BNA and the government of the People’s Republic of Angola for having continued to be trusted partners. Lastly the Namibian embassy in the People’s Republic of Angola is commended for playing a facilitation role,” he said.

The debt which hails from a currency conversion agreement entered into in 2015 on June the 18th was meant to oil trade activities at the border towns of Oshikango in Namibia and Santa Clara in Angola but the abuse of the currency exchange saw everything going south.

“This situation invariably led to the accumulation of debt. As a result, the two institutions relooked at the agreement and resolved that there would be no further exchange of Angolan Kwanzas in Namibia as was the case and a new implementation arrangement was agreed upon, which included a repayment schedule of the debt,” he said.

Meanwhile, the repayment came in time to beef up Namibia’s international reserve stock by N$5.7 billion.