Regulatory Alerts1995-06-23
Instruction No. 02/95: Monetary Adjustment
The National Bank of Angola issued Instruction No. 02/95 to implement a monetary adjustment effective July 1, 1995, redefining the national currency unit as the Reajustado Kwanza (KZR), equivalent to 1,000 New Kwanzas. Financial institutions and authorized entities must convert all deposit and loan portfolios, collectible values, and ledger balances to KZR using downward rounding, with fractional amounts recorded in a newly created account. The directive mandates that all New Kwanza-denominated financial instruments presented until August 29, 1995 be accepted at the established equivalence, while subsequent submissions require explicit Governor authorization, with detailed execution rules to be issued by the Banking Supervision Directorate.
INSTRUCTION NO. 02/95 SUBJECT: FINANCIAL SYSTEM Monetary Adjustment
Considering the provisions established in Article 7 of the Law creating the new National Monetary Unit; In exercise of the competence conferred upon me by the Organic Law of the National Bank of Angola, I HEREBY DETERMINE: Article 1 Effective July 1, 1995, the unit of the National Monetary System shall become the Reajustado Kwanza, abbreviated as KZR, equivalent to 1,000 (one thousand) New Kwanzas.
Article 2 On that date, financial institutions and other entities authorized to conduct their activities by the National Bank of Angola shall convert into Reajustado Kwanzas all amounts in their Deposit and Loan Portfolios and other collectible, due and amortizable values, as well as all Ledger balances, including those of off-balance sheet accounts. Article 3 The conversion referred to in the preceding article shall be carried out by rounding down to the lower unit, with the fraction accounted for in a new account to be created, in accordance with a Directive to be distributed by the Banking Supervision Directorate.
Checks, promissory notes, withdrawal notes, and other documents and papers representing value expressed in New Kwanzas presented until August 29, 1995 shall be accepted based on the equivalence referred to in Article 1. Article 5 Upon receiving the documents referred to in the preceding article, the institutions and entities processing them shall affix a visible stamp indicating the value in Reajustado Kwanzas. Article 6 The acceptance of documents indicating value expressed in New Kwanzas beyond the date set in Article 4 shall be subject to the express authorization of the Governor of the National Bank of Angola.
Article 7 The Banking Supervision Directorate shall establish, via Directive, the execution rules to be complied with by financial institutions and other entities authorized to conduct their activities by the National Bank of Angola.
LUANDA, JUNE 23, 1995.-
THE GOVERNOR
ANTÓNIO GOMES FURTADO