LONDON (Reuters) - Angola’s dollar bond maturing in 2025 fell on Tuesday, extending the previous day’s losses ahead of an expected devaluation in the kwanza currency.
The bond, which has $1.5 billion outstanding, lost 0.54 cents to trade at 116.05 cents, according to Thomson Reuters data.
Two banking sources said the Central Bank of Angola would hold a foreign exchange auction on Tuesday, the first since it announced a shift away from a peg of around 165 kwanza to a trading band against the dollar last week.
“Any reform is an upside for Angola at this point - I would take it as a positive, but with these countries, there are always a lot of good intentions,” said Regis Chatellier, strategist at Societe Generale, pointing to Nigeria’s multiple attempts at unshackling its currency.
“We don’t know of course, but we could have a similar issue here.”
Reporting by Karin Strohecker; editing by Sujata Rao