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2017-11-30

Instruction No. 05-2017 of 01 December on Exchange Rate Policy

The Governor of the Banco Nacional de Angola issued Instruction No. 05-2017 to revoke previous directives and align foreign exchange procedures with monetary policy objectives. The regulation mandates the immediate release of captive national currency funds held at the central bank and abolishes the requirement for such captive resources at commercial banks for foreign currency purchases. Furthermore, it restricts foreign exchange operations to clients with an active Tax Identification Number and subjects non-compliant financial institutions to legal penalties.

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INSTRUCTION No. 05/2017 of 01 December SUBJECT: EXCHANGE RATE POLICY

  • Revocation of Instruction No. 12/15 and points 4.1.4, 4.1.5, 4.1.6 and 4.1.7 of Instruction No. 10/2015, of 04 June Considering that the procedures for participation and execution of foreign currency purchase and sale sessions were established by Instruction No. 10/2015, of 04 June; There is a need to better reconcile the operationalization of the foreign exchange market with the objectives of monetary and exchange rate policies; Taking into account the need to adjust the foreign exchange regulation regarding the process of purchasing foreign currency for the realization of foreign exchange operations for goods, current invisibles, capital, and sales to Exchange Houses; In the exercise of the competence conferred upon me by Article No. 51 of Law No. 16/10, of 15 July, the Law of the Banco Nacional de Angola. DETERMINE:

  1. Instruction No. 12/2015, of 24 June, and points 4.1.4, 4.1.5, 4.1.6 and 4.1.7 of Instruction No. 10/2015, of 04 June, are revoked.

  2. With the entry into force of this Instruction, national currency resources that are captive at the Banco Nacional de Angola, for the purpose of acquiring foreign currency, are immediately mobilized.

  3. Likewise, the obligation to constitute captive resources in national currency in the applicant's account, for the purpose of purchasing foreign currency, at Banking Financial Institutions, ceases.

  4. Banking Financial Institutions may only execute foreign exchange operations ordered by clients who possess an active Tax Identification Number (NIF).

  5. Non-compliance with the provisions of this Instruction subjects Banking Financial Institutions to penalties, in accordance with the Basic Law of Financial Institutions and the Exchange Law.

  6. Doubts and omissions resulting from the interpretation and application of this Instruction are resolved by the Banco Nacional de Angola.

  7. This Instruction enters into force on the date of its publication. PUBLISH. Luanda, 01 December 2017. THE GOVERNOR JOSÉ DE LIMA MASSANO

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