Instruction No. 1/93 on the Public Sale of Foreign Exchange

THIS INSTRUCTION IS REVOKED BY NOTICE NO. 4/93 OF APRIL 13 INSTRUCTION NO. 1/93

Considering that one of the main objectives of the restructuring of the Angolan economy, within the framework of the government program, is macroeconomic equilibrium based on the action of market forces;

Becoming indispensable, for this purpose, to regulate the practical procedures by which the public sale of foreign exchange instituted by Notice No. 2/93 of the National Bank of Angola will be governed;

In the exercise of the competence attributed to me by the organic law of the National Bank of Angola;

I DETERMINE;

Article 1
The system for the public sale of foreign exchange - known as the foreign exchange auction - will be guided by the National Commission for the Public Sale of Foreign Exchange, directly subordinate to the Governor of the National Bank of Angola, and will comprise the following members:

• The Governor of the National Bank of Angola, who will preside over the national commission, or his substitute;
• The Directors of Reserve Management, Issuance and Credit, Studies and Statistics, and Banking Supervision;
• Two members of the board of directors designated on a rotating basis for each public sale session of foreign exchange.

Article 2
The National Commission for the Public Sale of Foreign Exchange is directly responsible for the operation and administration of the public sale of foreign exchange mechanism and shall have the following Functions:
a) To publicize the date, time, amount of foreign exchange that the Bank will place in the auction, and the location of the public sale sessions, through a notice prepared in accordance with Annex No. 1, to be posted in the premises of the National Bank of Angola and publicized through the media with a minimum advance notice of five days. b) To open the envelopes containing the foreign exchange purchase proposals and verify the amounts sought and the offered price, as well as whether they contain the deposit slip at the BNA, a certified check, or a transfer from a banking institution for the total value of the offer. c) To classify the proposals in descending order of the offered prices, with a view to determining the marginal rate at which the foreign exchange will be exhausted. d) To supervise the sale of foreign exchange respecting the order referred to in the previous paragraph and the minimum quotation.

Article 3
1- To establish the minimum quotation, the National Commission for the Public Sale of Foreign Exchange will meet behind closed doors on the day of each session, at 10:00, with at least three of its members present and without the presence or participation of any other person besides the members of the commission. Once the basic minimum quotation for that day is decided, these values will be recorded in minutes, to be drawn up and signed by all present before leaving the room where the meeting took place. 2- The sales will be carried out in unit lots equivalent to USD 5,000.00 (five thousand United States dollars). 3- The minimum purchase amount will be USD 20,000.00 (twenty thousand United States dollars).

Article 4
1- The proposals must be presented in a closed envelope, containing the offer on the form provided for this purpose at the National Bank of Angola (Annex No. 2), together with the deposit slip at the B.N.A., bank transfer order, or certified check by any banking institution. 2- The envelopes with the proposals will be deposited in a specially provided and marked urn for this purpose, which will be located in a place of easy and direct access for the public, with each proposer receiving a numbered token at the time of depositing the envelope. 3- The proposals will be deposited from 8:30 on the day of the sale session to which they relate, and the urn must be closed and locked by 10:00, at which time the meeting of the National Commission for the Public Sale of Foreign Exchange begins. 4- The transfer orders and certified checks referred to in this article must be issued in favor of B.N.A. – Public Sale of Foreign Exchange.

Article 5
1- In a public session, and in the presence of at least two members of the National Commission for the Public Sale of Foreign Exchange, all envelopes containing the purchase proposals will be opened.
2- After the opening of the envelopes, the National Commission will classify the purchase proposals, on a board visible to all present, and will proceed to classify them according to and in descending order of the offered quotations. The lowest offered price that exhausts the supply will be the price at which all foreign exchange will be sold. 3- If there are proposals with identical prices and the foreign exchange for sale is not sufficient to meet all of them, the available foreign exchange will be awarded in proportion to the amount of the proposals, and proposers may withdraw their proposal if they are not interested in the award of partial amounts. 4- If there are no proposals, or if none of the proposals offer a price equal to or higher than the basic minimum quotation established by the commission, the session will be declared annulled.

Article 6
1- Immediately after the end of the sale session, unfulfilled proposals will be returned to their respective proposers, together with the certified check or BNA check for the amount deposited.
2- In cases of partial fulfillment of the proposal, or of a marginal exchange rate lower than the quotation offered by the proposer, the BNA will issue a check in national currency for the difference between the value of the proposal and the awarded value.

Article 7
1- At the end of the public sale session of foreign exchange, each awardee will receive a certificate confirming the volume of foreign currency acquired, according to the model contained in Annex No. 3, in their name or that of the person they indicate. 2- For the use of the acquired foreign exchange, beneficiaries must present, from the third day after the holding of the session, at the location indicated in the certificate referred to in the previous number, the necessary documentation for the operation to be carried out, in case they are subject to prior licensing. 3- The documentation must be presented within a maximum period of 10 days, counting from the date of the holding of the session, under penalty of losing the right to the next session.

Article 8
Doubts and omissions resulting from the interpretation and application of this Instruction will be definitively resolved by a decision of the National Commission for the Public Sale of Foreign Exchange.

Article 9
This Instruction enters into force immediately.
PUBLISHED
Luanda, January 25, 1993.
THE GOVERNOR
GENEROSO HERMENELGIDO GASPAR DE ALMEIDA