Luanda, May 7, 2026 (Lusa) - The National Bank of Angola (BNA) acknowledged on Thursday that it may use international reserves to stabilise the currency market if external shocks persist and recommended cutting customs taxes on food and fertilisers.

BNA official, Domingos Pedro, spoke at a session presenting the International Monetary Fund (IMF) report on the Regional Economic Outlook for Sub-Saharan Africa.

He acknowledged this possibility if external shocks, such as the Middle East conflict, continue.

He said inflation had followed a consistent downward path, reaching 12.4% in March due to the prudent management of monetary aggregates (the total amount of money circulating in the economy), a greater supply of consumer goods and relative exchange rate stability.

The medium-term goal is "to bring inflation to single digits."

Domingos Pedro said the BNA focused on exchange stability.

"The National Bank of Angola continues to closely monitor exchange market dynamics and, if conditions require it, we may eventually use reserves to stabilise the market and prevent disruptions that result in inflationary pressures and undermine our goals," he said.

The BNA set the inflation target for the end of 2026 at 13.5%.

Domingos Pedro added that the bank monitored market liquidity using monetary policy tools, such as the buying and selling of government bonds to control the money supply and mandatory reserves, so that "market liquidity levels are what economic activity actually demands and no more."

He said monetary policies were not enough to tackle "imported inflation" from rising fuel, fertiliser, and food prices.

"In this regard, we have been fine-tuning coordination between monetary and fiscal policy, interacting frequently and decisively with the Treasury," and the government, which has adopted measures to support domestic production and diversification.

"Perhaps it is time to start thinking about a possible cut in import taxes on food," he suggested.

He advised the government to look at import taxes on food and fertilisers, as well as consumption taxes, "as a way to relieve families who will be heavily penalised by this war’s effects."

Pedro stressed that other actors must contribute, as cost-push inflation is not fought solely with monetary policy measures; measures on the real economy side are also needed for these actions to be effective.

RCR/LYT // ADB.

Lusa