Regulatory Alerts1996-04-30
Instruction No. 04/96 on the Exchange Rate Regime and Resale Period of Foreign Exchange to BNA
The Governor of the Banco Nacional de Angola issued Instruction No. 04/96 to mandate that financial institutions resell acquired foreign exchange to the central bank within 48 working hours of the value date. The directive establishes that resale transactions must occur at the primary market purchase rate and caps the maximum margin financial institutions may charge their clients at 3 percent. All outstanding foreign exchange operations not yet executed are subject to this 48-hour resale window, excluding those tied to credit lines, with the instruction taking immediate effect.
INSTRUCTION NO. 04/96 SUBJECT MATTER: EXCHANGE RATE REGIME RESALE PERIOD OF FOREIGN EXCHANGE TO BNA
Considering the need to improve the efficiency and fluidity of foreign exchange operations carried out by financial institutions and to ensure the optimization of the country's use of foreign exchange resources; Having verified certain irregularities in the application of official exchange rates by financial institutions to their clients; In exercise of the powers conferred upon me by the Organic Law of the Banco Nacional de Angola, I HEREBY DETERMINE
Article 1 Financial institutions are required to resell to the Banco Nacional de Angola all foreign exchange acquired from it that has not been sold to their clients, within 48 working hours following the respective value date.
Article 2 The resale operation shall be carried out at the primary market purchase rate on the date when the Banco Nacional de Angola effected its respective sale.
Article 3 The selling rate charged by financial institutions to their clients shall not exceed the maximum margin of 3% established by Instruction No. 4/94 dated April 22.
Financial institutions shall resell to the Banco Nacional de Angola all foreign exchange resulting from operations not yet executed by the effective date of this instruction, within a period of 48 hours, excluding those linked to credit lines. This instruction enters into force immediately. Luanda, June 27, 1996.
THE GOVERNOR SEBASTIÃO BASTOS LAVRADOR