Africa-Press – Angola. The country’s Foreign Assets reached a total of US$15.51 billion in the 2021 financial year, representing an annual expansion of 4.27 percent, compared to the US$14.88 billion recorded in 2020.
External assets are immediately available values under the control of the monetary authority, intended to cover imbalances in the Balance of Payments and to support Central Bank interventions in the foreign exchange market in order to influence the exchange rate.
Data from the National Bank of Angola (BNA), in terms of market risk, the total Value at Risk (VaR) was US$238.49 million in 2021, remaining below the estimated potential loss value for 2020 of US$414.73 million dollars.
The average maturity of the Foreign Assets portfolio dropped to 1.13 years in 2021, compared to the average of 1.68 years in 2020. However, the level of credit risk remained low, with around 75.77 percent of Assets Outsiders registering a high quality, low risk investment rating.
The net balance between the volume of expansion and contraction factors of international reserves totaled a negative value of US$857.79 million, representing a significant improvement compared to the negative balance of US$3.96 billion observed in 2020.
On the one hand, expansion factors totaled US$10.04 billion, comprising mainly revenues from the oil and diamond sectors, resources from the escrow Account and financing obtained.
On the other hand, the annual volume of contraction factors totaled US$10.90 billion, mainly accommodating CUT4-ME expenditures and debt service disbursements.
Fixed Income
These assets constituted a relevant part of the investment portfolio, with a percentage weight of around 47.22 and 33.59 percent, respectively. This position represents a slight inversion compared to that recorded in 2020, in which Money Market and Fixed Income operations accounted for almost 39.62 and 48.49 percent, respectively, of the total investment portfolio in question.
In 2021, the BNA maintained its conservative strategy in managing the investment portfolio, focusing on maintaining a high level of portfolio liquidity, in line with the recommendations of international bodies, particularly the International Monetary Fund and the World Bank.
The BNA prioritized the diversification of the investment portfolio, with the reduction of exposure to financial instruments issued by the US Treasury Department, whose percentage weight registered a reduction from 34.57 to 21.03 percent of the total.
15.51 BILLION DOLLARS
This corresponds to an annual expansion of 4.27 percent, compared to 14.88 billion in 2020.
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