Angola and Namibia's currency conversion agreement to come into force
It aims to facilitate commercial transactions between Angola and Namibia.A currency conversion agreement between the National Bank of Angola and the Bank of Namibia will enter into force from June 18, according to an Angop report.
The two central banks had signed the agreement on September 22nd in Santa Clara (Angola).
It aims to facilitate commercial transactions between Angola and Namibia, particularly in their border areas.
It will allow direct exchange between the Kwanza and Namibian dollar in banks, exchange houses and other authorised agents in both countries.
This initiative was launched after the publication of a joint study by Angola and Namibia revealing that cross-border trade between the two countries is currently hampered by the fact that transactions are made in American dollars, as a shortage of US dollars would contribute to a decline in the volume of trade.
Namibia and Angola have been strengthening their ties in recent years in a bid to increase trade and boost their economies.
Last year, the Bank of Namibia has granted a provisional authorisation to Angolan group BIC Bank to operate as a banking institution in Namibia.