The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Angola's de-dollarization drive

The country’s radical programme has put pressure on the banking sector, which in its short existence has relied heavily on the business brought in by foreign exchange. How can banks stay afloat with a lack of dollars in the system?

luanda_angola_600px

Luanda, Angola. A halving of oil prices last year has increased hardship in Angola, one of the world's most unequal countries

The sky outside the Banco Angolano de Investimentos (BAI) head office is ominously grey and has dulled the room in which João Fonseca, executive director, sits. 

His mood reflects the room’s hue. Fonseca and his team have been working tirelessly to straighten out the bank’s balance sheet, which, he admits, was “heavily reliant on foreign exchange”. When the de-dollarization of Angola’s economy was stepped up last year, coinciding with the global collapse in the oil price, a dearth of dollars in the country put BAI in a tricky situation.

“It has been nonstop over the last 10 months, and we have been doing everything we can to mitigate against foreign exchange and liquidity risk at a time when dollar liquidity is low. It’s what we spend every day doing,” he says. There is a lot of work for BAI to do at this juncture in Angola’s economic development.

In stark contrast, Emidio Costa Pinheiro, chairman of the executive committee at Banco de Fomento Angola (BFA), seems well-rested after returning from a break overseas.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree