Instruction No. 16/2019, of October 24

CONTINUATION OF INSTRUCTION NO. 16/2019 Page 1 of 2 INSTRUCTION NO. 16/2019 dated October 24

SUBJECT: EXCHANGE RATE POLICY

• Reference Exchange Rates
• Calculation Methodology
• Exchange Rates of Banking Financial Institutions

Considering the need to adjust the process for forming reference exchange rates in the primary market and the exchange rates that must be charged by Banking Financial Institutions;

Pursuant to the combined provisions of Article 3 of Law No. 16/10, dated July 15, the Law of the Banco Nacional de Angola, and Article 70 of Law No. 12/15, dated June 17, the Framework Law of Financial Institutions, and in exercise of the competence conferred upon me by
Article 51 of Law No. 16/10, dated July 15, the Law of the Banco Nacional de Angola.

I HEREBY DETERMINE:

1. Reference Exchange Rates - Calculation Methodology
   1.1. On days when auctions are held, the reference exchange rate
   (sell) shall be the weighted average of the sell rates from foreign currency auctions organized by the Banco Nacional de Angola, regardless of the amount sold.
   1.2. On days when no auctions are held, the reference exchange rate
   (sell) shall be calculated based on the weighted average of sales occurring in the interbank market, provided that the accumulated value of these sales exceeds the equivalent of USD 20 million (twenty million United States dollars).
   1.3. The Banco Nacional de Angola shall publish the reference exchange rate, on its
   CONTINUATION OF INSTRUCTION NO. 16/2019 Page 2 of 2 institutional portal, by 12:30 p.m. each business day.
   1.4. On days when neither auctions nor sales in the interbank market occur at a value exceeding that established in point 1.2 of number 1
   of this Instruction, the previous reference rates shall remain in effect.
   1.5. The market reference exchange rate (buy) shall be calculated with a reduction of up to 2% (two percent) from the reference exchange rate
   (sell).

2. Exchange Rates of Banking Financial Institutions
   2.1. In foreign currency transactions in the interbank market,
   notably between Banking Financial Institutions, exchange rates shall be freely negotiated between the Parties.
   2.2. In the purchase and sale of foreign currency to their clients, exchange rates
   are freely negotiated between the Parties.

3. Doubts and Omissions
   Doubts and omissions arising from the interpretation and application of this Instruction shall be resolved by the Banco Nacional de Angola.

4. Revocation
   Instruction No. 20/2018, dated December 3, is hereby revoked.

5. Entry into Force
   This Instruction enters into force on the date of its publication.

PUBLISH.
Luanda, October 24, 2019.

THE GOVERNOR
JOSÉ DE LIMA MASSANO