Instruction No. 20/2018, of December 3

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INSTRUCTION NO. 20/2018

of December 3

SUBJECT: EXCHANGE RATE POLICY

• Reference Exchange Rates
• Calculation Methodology
• Exchange Rates of Banking Financial Institutions

Considering the need to adjust the process for forming reference exchange rates in the primary market and the exchange rates that must be practiced by Banking Financial Institutions;

In accordance with the combined provisions of Article 3 of Law No. 16/10, of July 15, the Law of the National Bank of Angola, and Article 70 of Law No. 12/15, of June 17, the Framework Law of Financial Institutions, and in the exercise of the competence conferred upon me by
Article No. 51 of Law No. 16/10, of July 15, the Law of the National Bank of Angola.

I DETERMINE:

1. Reference Exchange Rates - Calculation Methodology

1.1.On days when auctions are held, the reference exchange rate (sell) shall be the weighted average of the sell rates from foreign currency auctions organized by the National Bank of Angola, regardless of the amount sold.

1.2.On days when no auctions are held, the reference exchange rate (sell) shall be calculated based on the weighted average of sales occurring in the interbank market, provided that the accumulated value of these sales is greater than the equivalent of USD 20 million (twenty million United States dollars).

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1.3.The National Bank of Angola shall publish the reference exchange rate on its institutional portal by 12:30 hours of each business day.

1.4.On days when no auctions or interbank sales occur in a value greater than that established in No. 2, the previous reference rates shall remain in effect.

1.5.The market reference exchange rate (buy) shall be calculated with a reduction of up to 1% (one percent) on the reference exchange rate (sell).

2. Exchange Rates of Banking Financial Institutions

2.1.In foreign currency transactions in the interbank market, notably between banking financial institutions, exchange rates are freely negotiated by the parties.

2.2.In selling foreign currency to their clients, excluding other non-banking financial institutions, banking financial institutions may apply a margin of up to 2% (two percent) on the reference sell exchange rate published on the institutional portal of the National Bank of Angola.

2.3.In buying foreign currency from their clients, exchange rates shall be freely negotiated by the parties.

2.4.The margin referred to in point 2.2 applies to all foreign exchange operations without exception, including the sale of banknotes, traveler's checks and for covering international payment card usage.

3. Doubts and Omissions

Doubts and omissions resulting from the interpretation and application of this Instruction are resolved by the National Bank of Angola.

4. Revocation

Instruction No. 03/2018, of January 10, is hereby revoked.

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5. Entry into Force

This Instruction enters into force on the date of its publication.

PUBLISHED.
Luanda, December 3, 2018.

THE GOVERNOR
JOSÉ DE LIMA MASSANO