Angola Plans Foreign-Currency Bond Sale to Boost FX Liquidity.
- Resource Type
- Article
- Authors
- Almeida, Henrique
- Source
- Bloomberg.com. 3/12/2024, pN.PAG-N.PAG. 1p.
- Subject
- *BOND prices
*FOREIGN exchange
*LIQUIDITY (Economics)
*INVESTORS
*FOREIGN exchange market
*NATIONAL currencies
*PRICE inflation
- Language
Angola's government is planning to sell foreign currency bonds in an effort to increase the supply of dollars in the economy and alleviate pressure on the local currency, the kwanza. The Finance Ministry intends to offer bonds due in 2031 and 2034 through a book building process, although the timing and amount to be raised have not been specified. This move aims to allow local investors to exchange kwanzas for securities in dollars and hedge against exchange-rate risk. Inflationary pressures have risen in Angola due to a depreciation of the kwanza, prompting the Treasury to sell $300 million of foreign currency to commercial banks last month. [Extracted from the article]