Directive No. 02/DMA/2020 on Foreign Exchange Policy – Purchase and Sale of Foreign Currency in Currency Auctions and the FXGO Platform

GOVERNOR
DIRECTIVE NO. 02/DMA/2020
ORIGIN: Department of Asset Markets
DATE 17/06/2020
SUBJECT: FOREIGN EXCHANGE POLICY

• Purchase and Sale of Foreign Currency in Foreign Exchange Auctions and the FXGO Platform

Whereas it is necessary to ensure full compliance with the foreign exchange position limits of Banking Financial Institutions, in accordance with Provision No. 14/2019 of December 2 on the Foreign Exchange Position Limit and Directive No. 07/DSB/DRO/DMA/2018 of January 2 regarding Daily Information on the Foreign Exchange Position Limit, aiming to guarantee compliance in foreign exchange auctions conducted by the National Bank of Angola and in purchase and sale transactions carried out on the FXGO platform; Pursuant to Article 64 of Law No. 12/15 of June 17, the Basic Law on Financial Institutions; This Directive serves to establish the following:

1. The total of bids submitted by Banking Financial Institutions in foreign exchange auctions and foreign currency purchase and sale operations on the FXGO platform must be limited to the percentage of own funds defined in current regulations.
2. In light of point 4.1.3 of Instruction No. 19/2019 of November 6 on Foreign Currency Purchase and Sale Auctions, Banking Financial Institutions with a foreign exchange position limit below USD 1,000,000.00 (one million United States Dollars) are permitted a maximum of 4 bids in foreign exchange auctions, provided that their total does not exceed the aforementioned amount.

CONTINUATION OF DIRECTIVE NO. 02/DMA/2020 Page 2 of 2
3. In foreign currency purchase operations conducted with oil and gas sector companies, diamond sector companies, or any other participants, Banking Financial Institutions must retain the amount corresponding to their foreign exchange position limit and immediately (following purchase confirmation) place the excess on the FXGO platform for sale to other institutions, subjecting these institutions to the limits set forth in Article 1 of this Directive.
4. Non-compliance with the provisions of this Directive constitutes an offense provided for and punishable under Law No. 12/2015 of June 17, the Basic Law on Financial Institutions.
5. Doubts and omissions arising from the interpretation and application of this Directive are resolved by the National Bank of Angola.
6. This Directive enters into force on the date of its publication.

Luanda, 17/06/2020.
DEPARTMENT OF ASSET MARKETS

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Tânia Patrícia de Oliveira Mendes Lopes
-Director-