The Banco Nacional de Angola (BNA) announced it has adopted Bloomberg’s foreign exchange electronic trading system (FXGO) and its electronic auction system to bring greater efficiency and transparency to Angola’s FX market.
The solutions provide the BNA with real-time visibility of market activity, improving its oversight of Angola’s FX market, according to the announcement.
They enable the central bank to manage its market operations more efficiently. In accordance with the BNA’s instruction to the market, commercial banks and corporates in Angola have started to trade FX spot electronically over FXGO. The trading platform allows corporates to gather prices from multiple banks, and assists in getting the most competitive rate.
Bloomberg’s auction system provides a safe and secure environment for the BNA to perform currency auctions electronically, and for market participants to track and enter bids. Since the BNA adopted it in June, approximately $USD 50 million have been auctioned twice a week over the system.
Developing Angola’s FX market
“The implementation of Bloomberg’s FX trading and auction system represents a very important milestone in the development of the foreign exchange market in Angola. As part of a series of strategic actions taken with the support of the IMF, this new technology will bring operations on the Angolan market closer to that of other reference markets, and result in significant improvements in efficiency and transparency,” said Tânia Lopes, director of asset market department of the Banco Nacional de Angola.
“We are pleased to help the Banco National de Angola implement a step change in the management of its monetary operations and improve the functioning of Angola’s FX market. The combination of Bloomberg’s FXGO and auction system provides local market participants with FX technology used by central banks, government financial agencies and leading financial institutions across the world,” Tod Van Name, Bloomberg’s global head of FX electronic trading, said.
Bloomberg’s FXGO and auction system are fully integrated with the data, news, analytics and communications tools available on the Bloomberg Terminal. More than 40 countries globally use Bloomberg’s auction system to automate the tender process electronically. The system provides a safe and secure environment to issue debt and perform open market operations inclusive of FX interventions and repo auctions from a single platform.
Banco Nacional de Angola
Headquartered in Luanda, the Banco Nacional de Angola, as Angola’s central bank and issuing authority, ensures the preservation of the national currency’s value and plays a part in defining the exchange rate, financial and monetary policies. The BNA is also responsible for the execution, monitoring and control of monetary, exchange and credit policies, payment system management and circulating medium administration in the context of country’s economic policy, ensuring the stability of the Angolan Financial System.