LogoRegulatory Alerts
2020-06-16

Directive No. 02/DMA/2020, of June 17

The National Bank of Angola, through its Department of Asset Markets, issues this directive to enforce foreign exchange position limits for Banking Financial Institutions participating in FX auctions and on the FXGO platform. It caps institutional bids at four per auction, requiring that their total bid value does not exceed USD 1 million for entities with lower position limits, while mandating the immediate placement of any excess purchased currency on FXGO for resale. Non-compliance constitutes a punishable infraction under the Framework Law for Financial Institutions, with interpretive disputes resolved by the central bank and the directive taking effect upon publication.

Banco Nacional de Angola logo

Angola

Banco Nacional de Angola

Click to view thumbnail

GOVERNOR DIRECTIVE NO. 02/DMA/2020 ORIGIN: Department of Asset Markets DATE 17/06/2020 SUBJECT: EXCHANGE RATE POLICY

  • Purchase and Sale of Foreign Currency in Foreign Exchange Auctions and on the FXGO Platform

Whereas it is necessary to ensure full compliance with the foreign exchange position limits of Banking Financial Institutions, in accordance with the provisions of Notice No. 14/2019, dated December 2, on the Foreign Exchange Position Limit and Directive No. 07/DSB/DRO/DMA/2018, dated January 2, regarding Daily Information on the Foreign Exchange Position Limit, aiming to guarantee compliance with these limits in foreign exchange auctions conducted by the National Bank of Angola and in currency purchase and sale transactions carried out on the FXGO platform;

In accordance with Article 64 of Law No. 12/15, dated June 17, the Framework Law for Financial Institutions;

This Directive serves to establish the following:

  1. The total of bids submitted by Banking Financial Institutions in foreign exchange auctions and in foreign currency purchase and sale operations on the FXGO platform must be limited to the percentage of own funds defined in current regulations.
  2. Taking into account point 4.1.3 of Instruction No. 19/2019, dated November 6, on Foreign Currency Purchase and Sale Auctions, Banking Financial Institutions with a foreign exchange position limit below USD 1,000,000.00 (one million United States Dollars) are permitted a maximum of 4 bids in foreign exchange auctions, provided that the total of these bids does not exceed the aforementioned amount.

CONTINUATION OF DIRECTIVE NO. 02/DMA/2020 Page 2 of 2 3. In foreign currency purchase operations conducted with oil and gas sector companies, diamond sector companies, or any other participant, Banking Financial Institutions must retain the amount corresponding to their foreign exchange position limit and immediately (following purchase confirmation) place the excess on the FXGO platform for sale to other Financial Institutions, with these institutions subject to the limits set forth in number 1 of this Directive. 4. Non-compliance with the provisions of this Directive constitutes an infraction provided for and punishable under Law No. 12/2015, dated June 17, the Framework Law for Financial Institutions. 5. Doubts and omissions arising from the interpretation and application of this Directive are resolved by the National Bank of Angola. 6. This Directive enters into force on the date of its publication. Luanda, June 17, 2020. DEPARTMENT OF ASSET MARKETS

Tânia Patrícia de Oliveira Mendes Lopes -Director-

Share