Instruction No. 04/93: Exchange Rate Policy - Floating Rate Exchange Operations - Current Invisible Operations

REVOKED BY INSTRUCTION NO. 4/94 OF 22.04.94 INSTRUCTION NO. 04/93 SUBJECT: EXCHANGE RATE POLICY FLOATING RATE EXCHANGE OPERATIONS Current Invisible Operations Through Notice No. 04/93, dated 13/APR/93, the official exchange rate to be applied in operations with foreign entities was established. Considering it necessary to establish exchange mechanisms that allow the execution of operations in foreign currency and thereby benefit those agents who do not have access to budgetary exchange allocations, as determined in Notice No. 08/93 dated 27 May 1993, which establishes the floating rate exchange market: In exercise of the competence conferred upon me by the Organic Law of the National Bank of Angola, I DETERMINE: ARTICLE 1 SALE OF FOREIGN EXCHANGE 1 - Authorized institutions operating in the exchange market are permitted to carry out, without any prior authorization from the Central Bank, current invisible operations involving the sale of foreign currency as indicated below, requested by non-budgetary entities. 2 - The exchange rate to be applied by these institutions shall be a rate close to that practiced in the parallel foreign exchange market, and will be defined by the Central Bank. 3 - For these operations, a foreign exchange position limit will be established for each commercial bank for each of the categories listed below, which must be replenished weekly, following justification of the operations carried out in the previous week. FOR EDUCATIONAL, SCIENTIFIC, OR CULTURAL PURPOSES 1 - Sale of foreign currency intended for monthly remittances equivalent to up to USD 2,500.00 (two thousand five hundred United States dollars), for the maintenance of individuals residing in the country who are abroad for a maximum period of 90 days, following programs of an educational, scientific, or cultural nature. 2 - The operations provided for in this title are carried out upon presentation by the buyer of foreign currency of a document proving the purpose of the trip, the duration of the event, and a declaration attesting that the same operation has not been carried out at other credit institutions. 3 - The amount corresponding to the first month of stay abroad may be acquired prior to departure, with subsequent monthly installments depending on the presentation by the interested party's representative of a document indicating the establishment where the study program is carried out, attesting to attendance. 4 - If it is found that more than one remittance of this kind has been made in the same period in favor of the same beneficiary abroad, or in an amount exceeding that stipulated in number 1, the respective senders shall be held responsible before the Central Bank for taking the necessary measures to return the excess transferred amount to the country. 5 - The documents referred to in the preceding numbers constitute the exchange operation file and shall be kept on file by the institution for the period to be established. FOR HEALTH TREATMENT 1 - Sale of foreign currency intended to cover medical-hospital expenses abroad up to USD 5,000.00 and additionally the amount provided for travelers. 2 - The operations referred to in the preceding number are carried out upon: a) presentation of a medical certificate issued by a medical entity authorized to practice in the country, recommending medical-hospital treatment abroad, and indicating the name of the illness or its code; b) declaration from the doctor or clinic abroad where the treatment will be carried out, except in cases of recognized urgency. 3 - Observing the limit referred to in number 1, the sale of exchange for reimbursement of expenses for treatment already carried out is also permitted, by payment order directly in favor of the institution or the medical provider abroad, upon presentation of an invoice or debit note, on which the following data must be recorded:

• foreign exchange sale form number
• date of sale and the amount in foreign currency
• name and location of the accredited institution 4 - Supporting documents for medical-hospital expenses must be presented to the bank within 60 days after the beneficiary's return to the country, under penalty of sanctions under the law and prohibition of making new transfers. FOR TRAVELERS 1 - Sale of foreign currency to travelers up to the equivalent value of USD 3,000.00, per person and per trip, upon presentation of proof of boarding (passport with entry visa to the country to be visited and ticket). 2 - At the time of the operation, the operating institution must:
• require the presence of the traveler or, in cases of proven incapacity, their legal representative.
• verify, by the entry visa to the visited country, the execution of the trip corresponding to the previous sale.
• attach, in cases of sale to a legal representative, a copy of the instrument granting powers to the representative to carry out the operation or, in the case of representation of minor children, the birth certificate, identity card, or respective birth record. 3 - The institution is prohibited from delivering or transferring, to any intermediary between the seller and the buyer, traveler's checks, sale or purchase forms, or other forms for its use. 4 - Residents abroad, upon leaving the national territory, are permitted to acquire up to 50% (fifty percent) of the value of the sale made to the institution, upon presentation of the respective form. After its use, the aforementioned form shall be returned to the client with the inscription "VOID FOR REPURCHASE", expressed between two diagonal parallel lines. FOR BUSINESS, SERVICES, OR TRAINING 1 - Sale of foreign currency to legal entities, intended to cover the expenses of their employees abroad on business, service, or training trips, and additionally the amount provided for travelers, upon presentation of a formal letter on the employer's letterhead, informing the purpose of the trip, the duration of the stay abroad, and the traveler's position. 2 - The national currency equivalent of the exchange operation must be debited to the current deposit account in the name of the employing entity or paid with a check issued by it. 3 - The sale of foreign currency for the operations provided for in number 1 is subject to maximum daily allowances of USD 350.00, 300.00, and 200.00, respectively, if they concern the president and vice-president, director or equivalent positions, and others. 4 - In the event of an early return to the country before the planned end of the mission, the foreign currency acquired corresponding to the days of early return must be resold to the institution, under penalty of incurring a violation of the Law. ARTICLE 2. UNILATERAL TRANSFERS Preliminary Provisions Authorized institutions operating in the exchange market may carry out exchange operations corresponding to unilateral transfers from the country to abroad and vice versa, without prior authorization from the Central Bank, understood as those that, due to their unilateral nature, do not imply a counterparty of goods supply or service provision by the payment beneficiary. SALE OF FOREIGN EXCHANGE 1 - Authorized institutions may process requests submitted by individuals (up to an annual limit equivalent to USD 2,000.00), or legal entities (up to an annual limit equivalent to USD 10,000.00) for transfers intended to pay admission fees or associative contributions to class entities headquartered abroad. 2 - The transfers referred to in the preceding point may only be carried out in the form of payment orders or checks, in favor of a class entity abroad, whose objectives are compatible with the applicant's field of activity, upon presentation of an invoice, debit note, or equivalent document, containing at least the following elements: a) the name of the class entity abroad b) the value of the remittance c) the period to which the payment refers, if it concerns a periodic contribution. 3 - The documents referred to in number 1 must be kept on file by the institution in the manner and timeframe to be established. FOR MAINTENANCE OF NATURAL PERSONS 1 - Authorized institutions may carry out transfers up to a monthly limit of USD 1,500.00 as "maintenance of Angolans or foreigners residing abroad who are direct ascendants or descendants of residents in the country." 2 - The transfers referred to in number 1 are carried out upon presentation of a residence certificate every six months and documents proving the family relationship. PURCHASE OF FOREIGN EXCHANGE 1 - Authorized institutions may carry out exchange purchases resulting from the inflow of foreign currency through unilateral transfers from abroad to the country, both in favor of individuals and legal entities, provided they relate to: a) donations. b) maintenance of individuals residing or domiciled in the country. c) prizes won in sports competitions or other events under any title. d) contributions to class entities. e) inheritances and legacies, exclusively for individuals f) retirements and pensions g) assets, exclusively for individuals 2 - When carrying out the exchange purchase provided for in number 1: a) the authorized institution must identify the client selling the foreign currency, when it is a legal entity, making the relevant notes on the purchase form. b) If the seller of the currency is an individual, the purchase of exchange may also be carried out by non-accredited banking institutions. 3 - Accredited institutions may also purchase, at free rates, foreign exchange registered in foreign currency deposit accounts maintained at the institution itself by individuals. Luanda, 17 June 1993 THE GOVERNOR GENEROSO HERMENEGILDO GASPAR DE ALMEIDA