Notice No. 2/93 of January 25, 1993

Notice No. 2/93 Of January 25, 1993

In the context of the economic policy readjustment, it is imperative to initiate the process of aligning exchange rates with a macroeconomic equilibrium position. Pursuant to Article 42, subparagraphs a) and e), of the Organic Law of the National Bank of Angola, which establishes that it is the competence of the Central Bank, respectively, to define the principles governing foreign currency operations, establish exchange rates, and publish them, In exercise of the authority conferred upon me by the aforementioned law, I hereby order:

Article 1 A single and flexible exchange regime for the new kwanza is established, based on a public foreign currency sale system using the United States dollar as the intervention currency.

Article 2

1. The selling exchange rate shall be the result of each public foreign currency sale session conducted by the National Bank of Angola.
2. The buying exchange rate for the Central Bank shall be 1% (one percent) lower than the selling exchange rate.
3. The exchange rate resulting from each public foreign currency sale session shall remain in effect until the holding and conclusion of the immediately following session.

Article 3 The exchange rate thus defined shall govern the purchase and sale of foreign currency by the National Bank of Angola, as well as all operations involving goods, invisible items, and capital.

Article 4

1. Public foreign currency sales shall be conducted biweekly by the National Bank of Angola.
2. Such sales operations shall be exempt from taxes and commissions, subject to the public foreign currency sale procedure to be established in an instructional notice to be published by the National Bank of Angola.

Article 5

1. The general regime of mandatory sale to the Central Bank of 100% of foreign currency proceeds from the export of goods and services is maintained.
2. The sale must be effected at the National Bank of Angola within the timeframe and under the penalties established by foreign exchange law.
3. The National Bank of Angola may accredit commercial banks to, in its name, purchase the foreign currency referred to in this article, establishing position limits, transfer deadlines, and respective exchange rates.

Article 6

1. Freedom of foreign exchange operations is established, subject to the limitations contained in this notice.
2. Foreign currency acquired in the National Bank of Angola's public foreign currency sale sessions shall be freely available or usable by the purchasers.

Article 7

1. Any natural or legal person, private or public, may participate in the public foreign currency sale session, appearing in their own name or as a representative of third parties, whether these are residents of the city of Luanda or anywhere else in the country.
2. Only bids of a value equal to or greater than USD 20,000.00 shall be admitted in the public foreign currency sale sessions.

Article 8 Operations with values below the amount referred to in the preceding article shall be conducted in the secondary market among commercial banks, exchange houses, and their clients, under the terms and conditions to be established by an instructional notice from the Central Bank.

Article 9 All foreign currency needs of the administrative public sector shall be covered directly by the Central Bank.

Article 10 Financial institutions in the country (commercial banks authorized to conduct business) and exchange houses shall have access to the public foreign currency sale sessions up to the amount necessary to replenish the foreign exchange position authorized by the Central Bank.

Article 11 Notice No. 4/91 of November 4, as well as the instructional notices regulating it, are hereby repealed.

Article 12 This notice enters into force on the date of its publication.

Published, Luanda, January 25, 1993 THE GOVERNOR SEBASTIÃO BASTOS LAVRADOR