In Angola Finance ministry considers issuing domestic T-bonds in dollars

"The State's intention to issue the domestic market treasury bonds in foreign currencies ... was another issue highlighted at the meeting," a statement said.

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Angola's President Jose Eduardo dos Santos shows off his inked finger to photographers after casting his vote during national elections in the capital Luanda, August 31, 2012. REUTERS/Siphiwe Sibeko play Angola's President Jose Eduardo dos Santos shows off his inked finger to photographers after casting his vote during national elections in the capital Luanda, August 31, 2012. REUTERS/Siphiwe Sibeko
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Angola is considering issuing domestic-market treasury bonds in foreign currencies as part of a plan to increase forex liquidity, the finance ministry said on Saturday, in a move probably aimed at halting the sharp decline of the kwanza.

Africa's second-largest oil exporter currently issues treasury bonds in kwanza, with maturities ranging from 91 days to two years at interest rates up to 7 percent.

Angolan President Jose Eduardo dos Santos and his cabinet met on Thursday to discuss next year's budget and the state of the economy, the finance ministry said in a statement.

"The State's intention to issue the domestic market treasury bonds in foreign currencies ... was another issue highlighted at the meeting," a statement said.

The move would be: "part of a package of measures aimed at increasing foreign exchange liquidity, strengthening revenue and relieving pressure on the foreign exchange market".

Angola plans to raise $16 billion in domestic debt this year and a further $10 billion externally in an effort to fund its budget. That follows a fall in the price of oil, which accounts for 95 percent of foreign exchange revenues.

Angola's currency, the kwanza, has weakened by more than 30 percent this year on the official market as depressed oil prices sapped dollar supplies. It has dropped far more on the secondary market.

The kwanza traded at 135 against the dollar officially on Friday but close to 250 on the black market. Banking sources are expecting the kwanza to be devalued again this year.

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