Regulatory Alerts2022-02-15
Directive No. 01-DMA-2022, February 15
The National Bank of Angola (BNA) mandates Commercial Banks to execute foreign currency purchases and sales with BNA at freely determined FXGO platform rates upon request, specifying transaction amounts between USD 100,000 and USD 500,000. These operations must be completed within ten minutes of request receipt, defaulting to the CNF FXGO Trade Affirmation (One Way) command if no response is provided. The directive establishes corresponding settlement procedures, defines non-compliance as a punishable offense under Law 14/21, and takes effect upon publication.
GOVERNOR DIRECTIVE NO. 01/DMA/2022 ORIGIN: ASSET MARKETS DEPARTMENT (DMA)
DATE 15/02/2022 SUBJECT: FOREIGN EXCHANGE MARKET
- Exchange Rate
Considering the need to ensure continuous transparency and competitiveness of the foreign exchange market, ensuring that the exchange rates announced by Commercial Banks are those practiced in the majority of transactions with their clients and, consequently, allowing greater rigor in determining and publishing average market exchange rates by the National Bank of Angola (BNA); This Directive establishes the following:
- Commercial Banks, whenever requested by the Asset Markets Department of BNA, shall purchase or sell foreign currency to/from the counterparty BNA at the freely determined and published exchange rate by Commercial Banks on the FXGO platform.
- In accordance with the preceding paragraph, BNA communicates the purchase or sale of foreign currency by sending an RFQ to the Commercial Bank, specifying the nature (purchase or sale) and the exact requested amount, which may range from USD 100,000 (one hundred thousand US dollars) to USD 500,000 (five hundred thousand US dollars), depending on the Commercial Bank's size and the timing of the request.
- The foreign currency purchase or sale operation must be completed within 10 minutes of receiving the request; in the absence of a response, it shall be executed via the CNF FXGO Trade Affirmation (One Way) command.
DIRECTIVE NO. 01/DMA/2022 Page 2 of 2 4. For settlement purposes, the operation's execution ticket shall be sent to the Commercial Bank through currently valid operational channels and procedures. 5. Non-compliance with this Directive constitutes an offense provided for and punishable under Law 14/21 of May 19, 2021 (General Regime Law for Financial Institutions). 6. Doubts and omissions arising from the interpretation and application of this Directive shall be resolved by the National Bank of Angola (BNA). 7. This Directive enters into force on the date of its publication.
Luanda, February 15, 2022. ASSET MARKETS DEPARTMENT
Tânia Patrícia de Oliveira Mendes Lopes -Director-