Central Bank clarifies that national currency, the Kwanza, will not circulate physically in the SADC settlement system.

Contrary to what was reported in the national media, the Angolan currency will not be used as a means of payment in the SADC economic bloc.

The National Bank of Angola (BNA) clarified this morning that the Kwanza will not circulate in the Southern African Development Community Settlement System (SADC-RTGS), as announced by the governor of the Central Bank, Manuel Tiago Dias, at a press conference held after the 118th Ordinary Meeting of the Monetary Policy Committee (CPM).

According to a note published on the official website of the Angolan banking system regulator, the integration of the national currency as a settlement factor in the payment system does not involve the physical circulation of cash, that is, notes and coins in the neighboring country (Namibia) and in the other member countries of the region.

“Angola’s participation in the SADC-RTGS system will only enable Angolan payment service providers to join the SADC Instant Transfer System (TCIB), through the KWiK arrangement, allowing, in the first phase, instant transfers to be made between participating payment service providers at SADC level,” the statement reads.

Also, the cooperation protocol between the Angolan Central Bank and the Bank of Namibia (BoN) is underway, with work being done by the technical teams of both central banks, aiming to improve the flow of payments between the countries, making it faster, safer and less costly, the impact of which is expected to be reflected in trade relations between neighbouring countries.