Regulatory Alerts2024-09-13
Directive No. 05/2024, September 13
The Bank of Angola mandates that banking financial institutions immediately pass on 30% of foreign currency acquired from oil and diamond sector companies via the Bloomberg FXGO platform to the interbank market. Transactions must utilize RFQ or STA commands and be executed with at least three banking financial institutions, capped at three transactions per counterparty weekly. If interbank liquidity is insufficient, institutions must sell the acquired currency to the Bank of Angola at the prevailing average purchase exchange rate (BGN Bid).
GOVERNOR DIRECTIVE NO. 05/2024 ORIGIN: DEPARTMENT OF MARKETS (DME)
DATE 13/09/2024 SUBJECT: FOREIGN EXCHANGE MARKET
- Foreign Currency Purchase Operations by Banking Financial Institutions to Companies of the Oil and Diamond Sectors on the Bloomberg FXGO Platform In order to confer greater dynamism to the Foreign Exchange Market regarding foreign currency purchase operations by banking financial institutions to companies of the Oil and Diamond Sectors occurring on the Bloomberg FXGO platform, In accordance with the combined provisions of Instrutivo No. 02/2020, dated March 30, regarding Procedures for the Sale of Foreign Currency by Companies of the Oil Sector and Foreign Exchange Operations in the Interbank Market, and Directive No. 07/23, dated June 26, 2023, regarding Procedures for the Sale of Foreign Currency by Companies of the Oil and Diamond Sectors; This Directive serves to establish the following:
- Banking Financial Institutions must immediately pass on in the interbank market 30% (thirty percent) of the total amount acquired in foreign currency purchase operations to the oil and diamond sectors.
- For the purpose of passing on acquired currency in the interbank market, RFQ (Request for Quote) and STA (Single Tenor Action) commands are available, and the pass-on must be executed to at least 3 (three) Banking Financial Institutions per transaction.
- For foreign currency pass-on operations, a maximum of 3 (three) transactions per counterparty in the same week is established.
CONTINUATION OF DIRECTIVE NO. 05/2024 Page 2 of 2 4. In case of unavailability in the interbank market, Banking Financial Institutions must sell the acquired foreign currency to the Bank of Angola at the prevailing average purchase exchange rate (BGN Bid). 5. Doubts and omissions resulting from the interpretation and application of this Directive are clarified by the Bank of Angola. 6. This Directive enters into force on the day following its publication date. Luanda, September 13, 2024. DEPARTMENT OF MARKETS
Tania Patricia de Oliveira Mendes Lopes -Director-