Angolan central bank to loosen kwanza peg to US dollar

The Governor of the Angolan central bank, Jose de Lima Massano, has said the bank intends to loosen the arrangement that pegs the Angolan currency, the kwanza, to the US dollar¸ Bloomberg reports.

The news agency quotes the Governor as saying the kwanza will be allowed to float freely within a set range, which would be kept secret.

The governor said the central bank would intervene when the kwanza drifted outside the range.

At present the official exchange rate is pegged at 166 kwanza to the US dollar, but the black market rate is over 400 kwanza.

“We have an exchange rate that does not reflect the truth,” Bloomberg quotes the central bank governor as saying.