Regulatory Alerts2021-05-05
Directive No. 02/ DMA/DCC/ 2021
The Governor of the Central Bank of Angola, acting through its Asset Markets and Foreign Exchange Control Departments, has issued Directive No. 02/ DMA/DCC/ 2021 to standardize foreign exchange reporting procedures for Banking Financial Institutions. The directive mandates that institutions submit daily purchase and sale intentions, along with applicable exchange rates, via the Bloomberg FXGO BMatch platform by 08:30 AM for actual settlement, while permitting specific requests via FXGO RFQ. Consequently, the previous Needs Map (MdN) reporting is suspended and any interpretative doubts are resolved by the Central Bank, with all provisions taking immediate effect.
GOVERNOR DIRECTIVE NO. 02/ DMA/DCC/ 2021 ORIGIN: Department of Asset Markets (DMA) Foreign Exchange Control Department (DCC)
DATE 05/05/2021 SUBJECT: FOREIGN EXCHANGE POLICY
- Fa - Suspension of the Needs Map (MdN) -- F - Registration of Transactions on the Bloomberg FXGO BMatch Platform
Whereas it is necessary to define the procedures for the registration of transactions, as well as the reporting of information on foreign exchange operations by Banking Financial Institutions, via the Bloomberg FXGO BMatch platform;
Pursuant to the combined provisions of Article 40 of Law No. 16/10, dated July 15, the Central Bank Act, and Article 64 of Law No. 12/2015, dated June 17, the Framework Act on Financial Institutions, and in the exercise of the authority vested in me by Article 51 of Law No. 16/10 dated July 15, the Central Bank Act of Angola:
This Directive serves to establish the following:
- Banking Financial Institutions may communicate to the market, via the Bloomberg FXGO BMatch platform, actual needs for the purchase and sale of foreign currency, by submitting daily, until 08:30 AM, via FXGO BMatch, the total of their intentions to purchase and sell foreign currency, as well as the exchange rates for their respective transactions.
- For the purposes of the preceding paragraph, intentions to purchase and sell foreign currency must represent transactions for actual settlement, and failure to settle transactions due to insufficient funds is subject to penalties under the contractual terms and conditions agreed upon upon joining the FXGO platform.
- Banking Financial Institutions may submit specific needs via FXGO RFQ (Request for Quote).
CONTINUATION OF DIRECTIVE NO. 02/DMA/DCC/2021 Page 2 of 2 4. Banking Financial Institutions shall cease sending the Needs Map (MdN) to the Central Bank of Angola. 5. Doubts and omissions arising from the interpretation and application of this Directive shall be clarified by the Central Bank of Angola. 6. Directive No. 01/DCC/2018, dated April 3, is hereby revoked, along with all legal provisions that conflict with this Directive. 7. This Directive enters into force immediately.
Luanda, May 5, 2021. FOREIGN EXCHANGE CONTROL DEPARTMENT
Marcos de Nazaré Arsénio do Rosário Neto -Director- ASSET MARKETS DEPARTMENT
Isabel Maria do Rosário Dias -Deputy Director-