The Bank of Namibia (BoN) and Banco Nacional de Angola (BNA) have agreed to collaborate on various fronts, to further their respective price and financial stability mandates as well as execution of strategies to modernise national financial systems
The excellent bilateral ties between the two neighbouring countries have cultivated a long-standing alliance between the two central banks, which has resulted in increased cooperation.
In this regard, the two central banks are following the lead of their respective government's promotion of the free movement of people, goods, and services in addition to their standard peer-to-peer cooperation.
BoN Governor, Johannes !Gawaxab and the Bank's management team welcomed the Governor of Banco National de Angola, Jose de Lima Massano, and members of his delegation.
The visit aimed at pursuing a collaboration that can assist the two countries in attaining balanced and sustainable economic growth and prosperity of both nations.
Following the discussions, the two central banks decided to cooperate to promote effectively, modernised, and digitally-enabled payment methods between the two countries; improve trade-friendly exchange control regimes and protect the stability and integrity of their respective financial systems.
In this context, the two central banks agreed to further enhance trade facilitation by using current and regional cross-border payment system agreements to guarantee quicker, digitally enabled, and more cost-effective cross-border remittances.
To further facilitate payments in support of trade facilitation between the two countries, the two central banks agreed to explore innovative and instant payment solutions, and other financial services under the Fintech Regulatory Framework approach.
According to BoN, this also entails leveraging participation in the SADC Real Time Gross Settlement(RTGS) platform, with the potential onboarding of the two countries' respective domestic currencies (NAD and Kwanza) on the SADC-RTGS to facilitate payment of settlement for goods and services, thus enhancing trade among our respective nations.
Moreover, both countries agreed that they would ensure optimal participation in the Transactions Cleared on an Immediate Basis (TCIB) Scheme, introduced through the SADC payment systems structures, for faster, affordable cross-border remittances.
Regarding exchange control, the two central banks noted that such measures were historically punitive and detrimental to trade.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The meeting noted that the BNA has entirely removed its capital account restrictions, while BoN is committed to the gradual and conditioned sequenced removal of capital account restrictions. Both countries support the objectives set under the SADC Finance & Investment Protocol Annexure
4 to cooperate and coordinate in Exchange Control matters.
The central banks shall further promote collaboration between financial intelligence units to uphold financial integrity, and exchange information on illicit financial flows and any violation of applicable laws.
The two institutions reaffirmed their commitment to working together on financial system regulation and supervision by exchanging best practices and benchmarking.
In conclusion,!Gawaxab emphasised that the renewed cooperation between the two central banks will facilitate trade and contribute to economic recovery in the two countries.
"The cooperation reflects the abiding bonds of respect and friendship between our people", he enthused.
On his end, Massano concurred: "It is the proper course of action to forge ties between neighbours who share a rich history to create a prosperous future for both countries."
