Angola Seen Needing More Than Rate Increases to Support Kwanza
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Angola, sub-Saharan Africa’s third-largest economy, needs to take more steps to boost its currency than increasing the benchmark interest rate twice in two months, said Eaglestone Advisory SA.
The central bank could increase reserve requirements held in kwanzas at commercial banks or hold more dollar auctions, Tiago Dionisio, a Lisbon-based Eaglestone analyst, said Tuesday in an e-mailed reply to questions. Growing demand for kwanzas should reduce pressure on the exchange rate, he said.