Regulatory Alerts2020-06-08
Circular Letter No. 01/DMA/2020 – Explanatory Note on Foreign Exchange Position
The Bank of Angola issued Circular Letter No. 01/DMA/2020 to clarify the concept, calculation method, and compliance requirements for banking financial institutions' foreign exchange positions. The directive mandates daily calculations of long and short positions, capping both at 2.5% of regulatory own funds, and requires immediate sales or purchases via the FXGO platform to maintain limits. Institutions failing to comply face daily sanctions under Law No. 12/15, while specific operational procedures and recovery plans are enforced to ensure market liquidity.
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