The Bank of Namibia (BoN) has warned that dealing in the exchange of the Angolan kwanza into the Namibia dollar and vice versa without authorisation from the central bank is a criminal offence. This follows observations by both BoN and Banco Nacional De Angola that individuals and businesses not having the required licence are exchanging the kwanza and Namibia dollar, contrary to provisions of the Currency Conversion Act.
The central banks of Namibia and Angola implemented the Currency Conversion Agreement on June 18, which authorises the reciprocal acceptance of legal tender banknotes by legally authorised financial institutions at Oshikango and Santa Clara border posts. The ultimate aim of the agreement is to promote and facilitate trade between Angolans and Namibians at the two border towns.
“Only authorised commercial banks and exchange bureaus are allowed to exchange the kwanza for the Namibia dollar. No individual or business entity is allowed to exchange or trade in kwanza unless they are authorised financial institutions,” said Ndangi Katoma, Director of Strategic Communications and Financial Sector Development at BoN.
He further explained that authorised exchanges are only allowed to exchange up to 500 000 kwanza for an Angolan adult, 150 000 for an Angolan minor, 250 000 kwanza for a non-resident adult Angolan and 50 000 for a non-resident Angolan minor.
“Dealing in the exchange of the kwanza into the Namibia dollar without authorisation from the Bank of Namibia is a criminal offence and offenders will be dealt with in accordance with the relevant provisions of the Exchange Control Act. The Bank will continue with investigations into transgressions of the Currency Conversion Agreement and necessary action will be taken against offenders,” warned Katoma.