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2021-05-09

Guideline No. 07/2021 of May 10 - Foreign Currency Exchange Policy: Foreign Currency Purchase and Sale Auctions Organized by the National Bank of Angola

The National Bank of Angola issued Guideline No. 07/2021 to standardize the procedures for foreign currency purchase and sale auctions conducted via the Bloomberg FXGO platform. The regulation mandates that authorized banking institutions comply with internal control and anti-money laundering requirements, submit up to four exchange rate bids within fifteen minutes of session opening, and adhere to ascending or descending selection criteria based on whether they are selling or buying currency. Operations settle on a D+2 basis, with the central bank retaining the authority to exclude speculative bids and resolve interpretative disputes, while formally repealing Guideline No. 19/2019.

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GUIDELINE NO. 07/2021 of May 10 SUBJECT: FOREIGN EXCHANGE POLICY

  • Foreign Currency Purchase and Sale Auctions organized by the National Bank of Angola

Whereas it is necessary to adjust the procedures for organizing and operating auction sessions for the purchase and sale of foreign currency by the National Bank of Angola; Pursuant to the combined provisions of Article 40 of Law No. 16/10, dated July 15, the National Bank of Angola Law, and Article 64 of Law No. 12/15, dated June 17, the Framework Law on Financial Institutions, and in exercise of the competence conferred upon me by Article 51 of Law No. 16/10, dated July 15 - National Bank of Angola Law; I HEREBY DETERMINE:

  1. Object and Scope This Guideline establishes the rules and procedures that Banking Financial Institutions must observe in foreign currency auctions organized by the National Bank of Angola.

  2. Participation Conditions 2.1. Prior to participating in the auction session, a Banking Financial Institution must ensure compliance with applicable legislation and regulations governing banking activities, particularly regarding the existence of internal control systems and procedures that ensure compliance with legal and regulatory provisions on foreign currency trading, including those related to the prevention of money laundering and terrorist financing.

CONTINUED GUIDELINE NO. 07/2021 Page 2 of 4

2.2. Participation in the auctions is open to Banking Financial Institutions authorized by the National Bank of Angola.

  1. Procedures for Conducting Auctions 3.1 The purchase or sale of foreign currency by the National Bank of Angola is conducted electronically via the Bloomberg FXGO platform. 3.2 The amount available for the auction session and the denomination of the foreign currency are communicated by the National Bank of Angola via the Bloomberg FXGO platform or another available and suitable communication channel. 3.3 An interested Banking Financial Institution must submit its bids on the Bloomberg FXGO platform within a maximum period of 15 (fifteen) minutes after the session opens, indicating the amounts and respective exchange rates. 3.4 Each Banking Financial Institution may submit up to 4 (four) bids with different exchange rates, in accordance with the currency announced for the session.

  2. Criteria for Selecting Bids 4.1 Bids from Banking Financial Institutions to purchase foreign currency from the National Bank of Angola are selected in descending order of exchange rate, starting with the highest offered rate, until the total available amount is exhausted.

CONTINUED GUIDELINE NO. 07/2021 Page 3 of 4

4.2 Bids to sell foreign currency to the National Bank of Angola are selected in ascending order, starting with the lowest offered rate, until the total amount available from Banking Financial Institutions or sought by the National Bank of Angola is exhausted. 4.3 Whenever bids with equal rates are submitted, and if it is not possible to fulfill all requests in full, the available amount is allocated proportionally to the size of each submitted bid. 4.4 The National Bank of Angola reserves the right to exclude bids deemed speculative or outside the context of equilibrium, stability, and dynamism in the foreign exchange market. 4.5 The National Bank of Angola communicates the session results via the Bloomberg FXGO platform and/or another available and suitable communication channel, after the bid submission period closes.

  1. Procedures for Settlement of Operations The settlement of foreign currency purchase and sale operations is conducted on D+2, unless otherwise indicated by the National Bank of Angola.

  2. Sanctions Violation of the provisions of this Guideline constitutes an offense punishable under applicable legislation.

  3. Doubts and Omissions Doubts and omissions arising from the interpretation and application of this Guideline are resolved by the National Bank of Angola.

  4. Repeal Guideline No. 19/2019, dated November 6, is hereby repealed, along with all regulations contrary to the provisions of this Guideline.

CONTINUED GUIDELINE NO. 07/2021 Page 4 of 4

  1. Entry into Force This Guideline enters into force the day following its publication.

PUBLISHED. Luanda, May 10, 2021.

THE GOVERNOR JOSÉ DE LIMA MASSANO

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