Angola Plans Currency Auction Tuesday as It Ends Peg

  • Auction the first since nation announced new currency regime
  • Kwanza to fall about 15% at the auction: Eaglestone Advisory

Two thousand denomination kwanza currency banknotes.

Photographer: Simon Dawson/Bloomberg

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Angola’s central bank will hold an auction on Tuesday 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, one person added.