Regulatory Alerts1991-10-15
Instruction No. 02/91: Monetary Policy - Mandatory Reserves Regulation
The Banco Nacional de Angola issued Instruction No. 02/91 to establish the mandatory reserves regime for all financial institutions operating in Angola, setting a 20% reserve coefficient on national currency demand and time deposits. The regulation mandates that reserves be calculated based on the arithmetic mean of Friday balances, with a transitional 4% coefficient for new institutions that increases by 1/5 monthly until reaching the standard rate. Compliance requires weekly reporting to the Emission and Credit Directorate by the 5th business day, with voluntary excess balances earning a weighted system funding rate plus 1%, while shortfalls incur penalties of at least 1% above the highest active interest rate.
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