Notice No. 13/2022 of May 4 on Foreign Exchange Policy

PUBLICADO NO DIÁRIO DA REPÚBLICA, I SÉRIE, N.º 79, DE 4 DE MAIO DE 2022 NOTICE NO. 13/2022 SUBJECT: FOREIGN EXCHANGE POLICY

• Foreign Exchange Position Limit
  Where it is necessary to update the foreign exchange position limit and the base currency for calculating the positions of Banking Financial Institutions. Pursuant to the combined provisions of paragraphs d) and f) of paragraph 1 of Article 31, and paragraph f) of paragraph 1 of Article 54, both of Law No. 24/21 of October 18, the Law of the Banco Nacional de Angola, combined with paragraph o) of paragraph 1 of Article 166 of Law No. 14/21 of May 19, the General Regime for Financial Institutions Law, and with Article 12 of Law No. 5/97 of June 27, the Foreign Exchange Law. I HEREBY DETERMINE:
  Article 1.
  (Object and Scope)
  This Notice establishes the foreign exchange position limit and the calculation base for Banking Financial Institutions, hereinafter referred to as Commercial Banks.
  Article 2.
  (Foreign Exchange Position Limit)
  Commercial Banks must maintain, on a daily basis, a foreign exchange position that does not exceed 10% (ten percent) of their Regulatory Own Funds (ROF), regardless of whether the position is long or short.
  Article 3.
  (Calculation Base)

1. The following are considered for the calculation of the foreign exchange position:
   a) Balances converted to Kwanzas, from asset and liability accounts recorded in the balance sheet in foreign currency, at their net accounting value after deducting impairments, provided these have been established in foreign currency. b) ROF calculated at the close of the previous month, including for this purpose accumulated results up to that date, even if not yet audited.
2. Balances from off-balance sheet accounts are excluded from the foreign exchange position calculation.
   CONTINUATION OF NOTICE NO. 13/2022 Page 2 of 4
   Article 4.
   (Submission of Information to the Banco Nacional de Angola)
3. Commercial Banks must submit, by 8:30 a.m. on each business day, the foreign exchange position statement as per Annex I, which is an integral part of this Notice, and its corresponding closing trial balance for the previous business day.
4. The statement and corresponding trial balance must be submitted using the Financial Institutions Supervision System (SSIF), or, while SSIF availability is not yet established, in Excel format, via the electronic address: pcambial-DMA-DRO@bna.ao.
   Article 5.
   (Sanctions)
   Failure to comply with the limits established in this Notice constitutes an offence punishable under Law No. 14/21 of May 19, the General Regime for Financial Institutions Law.
   Article 6.
   (Doubts and Omissions)
   Doubts and omissions arising from the interpretation and application of this Notice are resolved by the Banco Nacional de Angola. CONTINUATION OF NOTICE NO. 13/2022 Page 3 of 4
   Article 7.
   (Revocation)
   The Notice No. 14/2019 of December 2 and Directive No. 07/DSB/DRO/DMA/2018 of January 2, 2019 are hereby revoked.
   Article 8.
   (Entry into Force)
   This Notice enters into force 5 (five) business days after the date of its publication.
   PUBLISHED.
   Luanda, April 26, 2022.
   THE GOVERNOR
   JOSÉ DE LIMA MASSANO
   ANNEX I
   FOREIGN EXCHANGE POSITION STATEMENT
   Bank:
   Date:
   Positions Recorded in Foreign Currency Converted to Kwanzas Total in Kwanzas USD EUR GBP ZAR NAD Other Currencies
   1.10 Cash and Balances
   1.20 Investments in Central Banks and other Financial Institutions
   1.30 Securities and Marketable Instruments
   1.40 Hedging Derivatives with Positive Fair Value
   1.50 Credits in the Payment System
   1.60 Foreign Exchange Operations
   1.70 Customer Loans
   1.80 Other Assets
   1.90 Other Fixed Assets
   2.10 Customer Funds and Other Loans
   2.20 Funds from Central Banks and other Financial Institutions
   2.30 Liabilities Represented by Securities
   2.35 Financial Liabilities at Fair Value through Profit or Loss
   2.40 Hedging Derivatives with Negative Fair Value
   2.50 Obligations in the Payment System
   2.55 Non-Current Liabilities Held for Sale
   2.60 Foreign Exchange Operations
   2.65 Financial Liabilities Associated with Transferred Assets
   2.70 Subordinated Liabilities
   2.80 Other Liabilities
   2.90 Provisions
   a NET FOREIGN EXCHANGE POSITION in Kwanzas b ROF (from the previous month) c Foreign Exchange Position as % of ROF (a/b) d Limit + 10% e Excess = value above 10% (Deficiency) = value below -10%