No regrets over currency swap
The Bank of Namibia (BoN) has no regrets over the currency swap arrangement it had entered into with Banco Nacional de Angola (BNA).
This is the impression Namibian Sun was given when it sat down briefly with central bank deputy governor Ebson Uanguta last week.
The interview followed the conclusion of repayments linked to the currency swap arrangement undertaken by the two central banks in 2014, valued at US$426.3 million (about N$5 billion).
BNA last week settled the final US$51 million (about N$600 million) tranche of the debt owed by the Angolan government to the BoN.
The currency swap arrangement was meant to facilitate trade between the northern town of Oshikango and Angola's southern town of Santa Clara.
Uanguta said the arrangement had served its intended purpose and was still feasible.
“We believe that the agreement that is in place is still feasible. It will still serve the purpose for which we have intended it for,” said Uanguta.
When asked if there was a possibility that a second currency swap could be entered into, Uanguta said time would tell.
“What we have done now, the agreement that we have explored, is the best arrangement. I cannot speculate there could be a different agreement to what we have now, but possibly time will tell.
“If that time comes, certainly we will explore and relook it because the world is changing. There could be some new developments which at this time we cannot anticipate,” Uanguta said.
He also felt the deal had favoured both the BoN and BNA.
“At this point in time we do not really foresee that we will make any changes to the agreement, but of course after some time we may review it, and then we will see, because that is a bilateral review both when we come together and then if we review and there is a need for one of the partners to change the agreement, then I think we will be more then flexible to relook at that,” he said.
The currency conversion agreement was entered into on 22 September 2014 and was implemented on 18 June 2015. The agreement enabled the residents of the border towns of Oshikango and Santa Clara to exchange their respective national currencies, in order to facilitate the payment of goods and services.
OGONE TLHAGE
This is the impression Namibian Sun was given when it sat down briefly with central bank deputy governor Ebson Uanguta last week.
The interview followed the conclusion of repayments linked to the currency swap arrangement undertaken by the two central banks in 2014, valued at US$426.3 million (about N$5 billion).
BNA last week settled the final US$51 million (about N$600 million) tranche of the debt owed by the Angolan government to the BoN.
The currency swap arrangement was meant to facilitate trade between the northern town of Oshikango and Angola's southern town of Santa Clara.
Uanguta said the arrangement had served its intended purpose and was still feasible.
“We believe that the agreement that is in place is still feasible. It will still serve the purpose for which we have intended it for,” said Uanguta.
When asked if there was a possibility that a second currency swap could be entered into, Uanguta said time would tell.
“What we have done now, the agreement that we have explored, is the best arrangement. I cannot speculate there could be a different agreement to what we have now, but possibly time will tell.
“If that time comes, certainly we will explore and relook it because the world is changing. There could be some new developments which at this time we cannot anticipate,” Uanguta said.
He also felt the deal had favoured both the BoN and BNA.
“At this point in time we do not really foresee that we will make any changes to the agreement, but of course after some time we may review it, and then we will see, because that is a bilateral review both when we come together and then if we review and there is a need for one of the partners to change the agreement, then I think we will be more then flexible to relook at that,” he said.
The currency conversion agreement was entered into on 22 September 2014 and was implemented on 18 June 2015. The agreement enabled the residents of the border towns of Oshikango and Santa Clara to exchange their respective national currencies, in order to facilitate the payment of goods and services.
OGONE TLHAGE
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