Capital market of local currency debt protects economy

Luanda – The existence of a domestic currency debt capital market helps protect the real economy from “whims”? of exchange rates, as it requires a diversified, stable and robust financial system, said the World Bank representative in Angola, Olivier Lambert, on Thursday.

Speaking at the Capital Markets Workshop in Angola, Olivier Lambert, stressed that diversification of the financial sector is important for the economy, because one cannot rely solely on the banking system for financing the real economy at a time when the economy is achieving a higher level of sophistication and requirements.

In the area of the financial system, the partnership between the Government of Angola and the WB has been in close relationship with the BNA for some years, with two relevant areas of action, in the case of the payment system and domestic market of public bonds.

He believes that the development of the Angolan economy is important for the sub-Saharan region, bearing in mind that Angola is currently the third largest economy in sub-Saharan Africa, after Nigeria and South Africa.

“In the current context of deep reforms, the strengthening of the private sector is therefore crucial to the sustainable development of Angola and will be at the center of the focus of the new partnership framework of the World Bank with the Government of Angola,” he said.

The director general of the Public Debt Management Unit (UGD), Walter da Cruz Pacheco, said that the foundations for economic development in the country are created, with a focus on domestic potential and the promotion of the private sector.

Source: Angola Press News Agency