Regulatory Alerts2009-12-24
Regulation (NAP) - Amendment of the Exchange Rate Regime
The Central Bank of São Tomé and Príncipe mandates a fixed exchange rate regime between the Dobra and the Euro, establishing it as the reference parity for all foreign exchange operations. The specific fixed rate value and maximum intermediary commissions charged by authorized operators shall be determined through official Central Bank notices. Effective 1 January 2010, this regulatory amendment aligns the national currency framework with structural economic characteristics and supports macroeconomic stability under the 2009 Economic Cooperation Agreement with Portugal.
| Central Bank of S. T. P. | N A P PERMANENT APPLICATION REGULATION | CODE |
|---|---|---|
| EA 04 | ||
| PROPOSER | EFFECTIVE DATE | DATE OF ISSUE |
| P.P.M.C. | 01/01/2010 | 24/12/2009 |
<u>Subject: Amendment of the Exchange Rate Regime</u>
Whereas:
The importance of choosing an exchange rate regime adjusted to the structural characteristics of the São Toméan economy;
The relevance of the exchange rate regime for price stability and the creation of conditions conducive to national and foreign investment;
The significance of the Economic Cooperation Agreement signed on 28 July 2009 between the Democratic Republic of São Tomé and Príncipe and the Portuguese Republic, with the objective of supporting macroeconomic and financial stability in São Tomé and Príncipe;
It is necessary to define the new exchange rate regime. Therefore:
Single Article Definition of the exchange rate regime
- Under Articles 6 and 10 of the Exchange Rate Law -- Decree-Law No. 32/99, which grants powers to the BCSTP in this matter, the current exchange rate regime of the Democratic Republic of São Tomé and Príncipe shall henceforth be a fixed exchange rate regime.
| Noted | Revocation Data: |
|---|
| Central Bank of S. T. P. | N A P PERMANENT APPLICATION REGULATION | CODE |
|---|---|---|
| EA 04 | ||
| PROPOSER | EFFECTIVE DATE | DATE OF ISSUE |
| P.P.M.C. | 01/01/2010 | 24/12/2009 |
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The exchange rate between the Dobra and the Euro shall henceforth be defined as a fixed parity ratio, serving as a reference for all foreign exchange operations.
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The determination of the value to be assumed by the fixed exchange rate between the Dobra and the Euro shall be made through an official Notice of the Central Bank of São Tomé and Príncipe.
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The validity of a fixed exchange rate between the Dobra and the Euro shall not prejudice the possibility of authorized operators charging intermediary commissions on foreign exchange operations, under terms to be defined through an official Notice of the Central Bank of São Tomé and Príncipe.
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The maximum limit on the value of commissions charged on the operations mentioned in the preceding paragraph shall be determined through an official Notice of the Central Bank of São Tomé and Príncipe.
| Noted | Revocation Data: |
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