1996-04-16
The Bank of Angola issued Notice No. 08/96 to implement a single, flexible exchange rate regime for the Adjusted Kwanza, establishing a public U.S. dollar auction system as the primary mechanism for determining the official selling rate. The regulation mandates that the secondary market selling rate remain within ±3% of the primary auction rate, with the Central Bank's buying rate set at 1% below the primary rate, and requires biweekly or ad-hoc dollar sales to stabilize the market. It further maintains mandatory foreign currency surrender rules for financial institutions, restricts public auction participation to non-financial entities, and allocates remaining administrative sector currency needs at the fixed primary rate pending Ministry of Economy and Finance approval.
NOTICE NO. 08/96
of 17 April
.
In the context of the economic policy readjustment, it is imperative to initiate the process
of aligning exchange houses with a macroeconomic equilibrium position;
Whereas Article 42, paragraphs a) and e), of the Organic Law of the Bank of Angola, it is
their respective competence to define the principles governing foreign currency operations,
establish exchange rates, and publish them;
In exercise of the authority conferred upon me by the Organic Law of the Bank of Angola;
I HEREBY DETERMINE:
Article 1.
[I] institute a single and flexible exchange rate regime for the Adjusted Kwanza, based on a system
of public foreign currency sale using the United States dollar as the intervention currency.
Article 2.
The public sale of foreign currency shall be conducted in dollar lots, and the price to be paid by
winning bidders shall be equal to the price offered by them.
Article 3.
1- The exchange rate obtained in the public foreign currency sale session, equal to the average rate
paid by winning bidders weighted by the amount of foreign currency purchased, shall be
the primary market selling rate and shall serve as the indicative rate for all foreign exchange
operations to be conducted in the secondary market;
2- The secondary market selling exchange rate shall be within a maximum limit of
plus three percent (+ 3%), while the buying rate shall reach a maximum limit of
minus three percent (- 3%).
3- The exchange rate resulting from each public foreign currency sale session shall remain in effect until the
immediately following session.
Article 4.
The exchange rate defined in Article 39 shall govern the purchase and sale of foreign currency by the Bank
of Angola, as well as all merchandise, invisible, and capital operations.
Article 5.
The buying exchange rate by the Bank of Angola shall be one percent (1%) lower
than the primary market selling rate.
Article 6
The public sale of foreign currency shall be conducted biweekly by the Bank of Angola or
whenever the Central Bank's intervention is deemed necessary to stabilize the foreign exchange market.
Article 7.
The general regime of mandatory sale to the Bank of Angola of the foreign currency amount exceeding the captive exchange position limit assigned to each Financial Institution remains in effect.
Article 8.
Foreign currency acquired in the Bank of Angola's public foreign currency sessions shall be
used by purchasers in accordance with the provisions of paragraph 3, letter a) of Dispatch No.
007/95 of the Ministry of Commerce and Tourism of 28 April, and in the Instruction regulating this
Notice.
Article 9.
1- Any private or public company may participate in the public foreign currency sale session,
excluding Financial Institutions and Exchange Houses.
2- Only bids for lots of value equal to or greater than the minimum, announced in the Notice published and advertised by the Bank
of Angola, shall be admitted in the public foreign currency sale sessions.
Article 10.
1- Foreign currency intended for current invisible operations may be sold to commercial banks by the Bank of Angola according to its availability.
2- Current invisible operations shall be conducted in accordance with the provisions of Instruction No.
8/94.
Article 11.
The remaining foreign currency needs in the administrative public sector shall be covered by the Bank of
Angola at the rate fixed in paragraph 1 of Article 3, subject to authorization by the Ministry of Economy and Finance.
Article 12
This Notice enters into force on the date of its publication.
PUBLISH
Luanda, 17 April 1996.
THE GOVERNOR
ANTÓNIO GOMES FURTADO