Windhoek
Angola’s notorious illegal currency traders have set up shop at Oshikango border post, thanks to the ‘business opportunity’ they found in the Currency Conversion Agreement that Namibia signed with Angola a few weeks ago, but much to the chagrin of the Bank of Namibia.
It is not only individual currency traders who have spotted the business opportunity on the Namibian side of the border post area, as several business entities have also started to trade or exchange Namibian dollars and Angola kwanza at Oshikango.
This prompted the Bank of Namibia to issue a stern warning that “no individuals or business entity is allowed to exchange or trade in kwanza unless they are authorised financial institutions.”
“The bank would continue with investigations into the transgression of the Currency Conversion Agreement and necessary action will be taken against the offenders,” the bank’s director for strategic communications and financial sector development, Ndangi Katoma said.
As its first step the Bank of Namibia this week started to enforce a maximum amount of kwanza currency that individuals are allowed to exchange at Oshikango border post.
As of this week Angolan adults are only allowed to exchange 500,000 kwanza per day and Angolan minors can exchange 150,000 kwanza. Angolan non-residents are allowed to exchange a maximum of 250,000 kwanza and Angolan non-resident minors 50,000 kwanza.
Katoma says the Currency Conversion Agreement only allows commercial banks and the Bureau de Changes to exchange kwanza for Namibian dollars.
Katoma says the currency agreement between Namibia and Angola, that was signed on June 18, aims at enabling the reciprocal acceptance of legal tender banknotes in Angola and Namibia by legally authorised financial institutions to conduct foreign currency exchange operations at Oshikango border post in Namibia and Santa Clara border post in Angola.
“The ultimate aim of the agreement is to promote and facilitate trade between Angolans and Namibians at the two towns,” he said.