Notice No. 04/91 of 4 November

NOTICE No. 04/91 of 4 November

Within the framework of the economic policy readjustment, in the context of the Government Action Plan, the creation of exchange mechanisms assumes special importance; these mechanisms, without compromising the Country's reserves, must accommodate the increase in international business and tourism travel, in order to accelerate the Country's integration into global trade flows; It is important to initiate the process of aligning exchange rates towards a macroeconomic equilibrium position, notably in the traveler exchange market; Being a floating exchange rate market, operated by authorized financial institutions and exchange bureaus, with access granted to individuals, both residents and non-residents, it is the only effective way to prevent the spread of the parallel market; The growing pressure of travel expenditures, benefiting from the official exchange rate, on the Country's external reserves must be reduced, to the detriment of the higher interests of the national economy; Establishing that Article 43 of the Organic Law assigns to the Central Bank the competence to license, revoke licenses, and supervise non-financial institutions dealing in gold and foreign exchange; It is the competence of the National Bank of Angola to define the principles governing operations with foreign currencies, as provided for in Article 42, letters a) and c), of the current Organic Law; In exercise of the authority granted to me by the aforementioned Law,

HEREBY DETERMINE:

Article 1

1. Commercial banks and exchange bureaus licensed by the Central Bank may purchase and sell foreign currency at free market rates, within the limits and conditions established in the Floating Exchange Rate Market Regulation, to be disseminated through an Instructional Circular of this Bank within 10 days from the effective date of this Notice.
2. From the effective date of the aforementioned Regulation, current invisible exchange operations provided for in that Regulation will no longer benefit from the official exchange rate.

Article 2 The operations referred to in the preceding Article will not be included in the exchange position limits addressed in Articles 3 and 4 of Notice 03/91 of 16 October, and therefore purchased positions will not be subject to automatic transfer to the Central Bank.

Article 3 The Central Bank may operate in the Floating Exchange Rate Market, however, exclusively with authorized commercial banks and at market rates.

Article 4

1. The entry into the Country of bank checks and traveler's checks denominated in foreign currency, as well as banknotes and metallic coins, is permitted, and a Currency Entry Declaration is mandatory when the value exceeds the equivalent of ten thousand United States dollars (US$ 10,000.00).
2. The declaration referred to in the preceding paragraph must be submitted to an institution authorized to operate in foreign exchange, within a period of two business days from the date of arrival in the Country.

Article 5

1. Residents are permitted to leave the Country with foreign currency, provided they present proof of its purchase from an accredited institution.
2. Amounts not exceeding the equivalent of five thousand United States dollars (US$ 5,000.00) are exempt from the obligation referred to in the preceding paragraph.
3. Non-residents wishing to leave the Country with foreign currency exceeding the equivalent of US$ 10,000.00 (ten thousand United States dollars) are required to present proof of the entry declaration referred to in paragraph 1 of Article 4.

Article 6 This Notice enters into force immediately.

PUBLISH Luanda, 4 November THE GOVERNOR, Fernando Teixeira