Angola opts for austerity

Angola’s President Joao Lourenco (pictured) said on Monday, January 8, that there could be no economic recovery without austerity measures, ruling out salary increases for civil servants at this point in time.

“When the economy is a little better, it’s only right that it should move the national salary, but now it would not be very advisable,” Lourenco told reporters at a media event to mark 100 days in office. Lourenco took over last year from José Eduardo dos Santos, who stood down after 38 years.

Angola’s central bank will hold an auction on January, 9 to sell foreign currency to commercial banks, its first since saying it will abandon a dollar peg, according to three people familiar with knowledge of the matter.

 The kwanza will probably be allowed to depreciate at the auction as the central bank shifts to a trading band, the people said, asking not to be identified because they aren’t authorized to speak publicly on the matter. About $100 million of foreign currency will be offered at the auction, according to Bloomberg sources.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s