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;
Pursuant to the combined provisions of Article 3.º of Law No. 16/10, dated July 15,

the Law of the National Bank of Angola, and Article 70 of Law No. 12/15, dated June 17,

the Framework Law of Financial Institutions, and in exercise of the competence conferred upon me by

Article No. 51.º of Law No. 16/10, dated 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 exceeds

USD 20 million (twenty million United States dollars).

CONTINUATION OF INSTRUCTION NO. 20/2018 Page 2 of 3 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 neither auctions nor sales in the interbank market

occur at a value exceeding that established in No. 2, previous reference rates shall remain unchanged. 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 between 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 between the parties. 2.4.The margin referred to in point 2.2 applies to all 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, dated January 10, is hereby revoked.

CONTINUATION OF INSTRUCTION NO. 20/2018 Page 3 of 3
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