Angola Approves Law Making Oil Companies Use Local Banks

Angola’s parliament Tuesday approved a law forcing oil companies to use local banks for all their transactions, the country’s official news agency Angola Press said.

Angola insists the exemption granted to oil companies from using the local banking system should no longer apply because financial institutions in the formerly war-torn nation are now developed enough.

Angola will give oil firms, commercial banks and monetary policymakers up to two years to adjust to a new law, Central Bank Governor Jose de Lima Massano was quoted as saying on Wednesday.

Angola’s economy relies heavily on oil revenues, which make up over 90 percent of export income.

The new rules will may some challenges for monetary policymaking and the central bank’s goal of keeping the kwanza currency stable.

Analysts say around US$10 billion could enter the financial system each year under the new law.