Directive No. 05/DSB/DRO/DMA/2018 on Foreign Exchange Position Limit and Daily Reporting for Commercial Banks

THE GOVERNOR
DIRECTIVE NO. 05/DSB/DRO/DMA/2018
ORIGIN: Department of Asset Markets (DMA)

• Department of Banking Supervision (DSB)
• Department of Regulation and Organization of the Financial System (DRO)
  DATE 20/08/2018
  SUBJECT: Foreign Exchange Position Limit
• Daily Information/Reporting
• Commercial Banks

Whereas it is necessary to provide greater transparency to foreign exchange operations carried out by Commercial Banks, hereinafter abbreviated as Banks; Considering the provisions of Notice No. 06/2018, dated August 15, regarding the Foreign Exchange Position Limit; This Directive serves to establish the following:

1. Banks must submit daily the "DAILY FOREIGN EXCHANGE POSITION" report and respective closing balance sheets, which shall contain information relating to the previous business day.
   1.1. The report referred to in the preceding point shall include the amounts of the elements specified in the Annex to this Directive, which forms an integral part thereof.
   1.2. The report shall be submitted electronically by 8:30 a.m., using the Financial Institutions Supervision System (SSIF), observing the provisions, requirements, and specifications of the XML message available on the SSIF Portal regarding the foreign exchange position report.
   1.3. For the purposes of the preceding point, while the SSIF is not yet available for sending and receiving information as stipulated in this Directive, Banks shall submit it to the BNA (Banco Nacional de Angola) in Excel format via the electronic address: dma@bna.ao.
2. The foreign exchange position shall be calculated in Euros (EUR).
   2.1. For the purposes of the preceding number, when converting foreign exchange positions in different currencies to Euros (EUR), the reference Average Exchange Rate in force on the day to which they relate shall be applied.
   2.2. Foreign currency-indexed operations shall not be considered for the purpose of calculating the daily foreign exchange position limit.
   2.3. A breach of the long foreign exchange position limit is deemed to occur when it exceeds the limit established in Notice No. 06/2018, dated August 15, regarding the Foreign Exchange Position Limit.
   2.4. A breach of the short foreign exchange position limit is deemed to occur when it falls below the limit established in Notice No. 06/2018, dated August 15, regarding the Foreign Exchange Position Limit.

Directive No. 05/DSB/DRO/DMA/2018 Page 3 of 5
3. Directive No. 01/DSI/DRO/DMA/2018, dated January 29, is hereby repealed.
4. This Directive enters into force immediately on the date of its publication.

Luanda, August 20, 2018.
DEPARTMENT OF ASSET MARKETS
Maria Cândida Sambingo
-Director-

DEPARTMENT OF BANKING SUPERVISION
Elavoko do Rosário Chaves João
-Deputy Director-

DEPARTMENT OF REGULATION AND ORGANIZATION OF THE FINANCIAL SYSTEM Carla Marisa Rodrigues Madeira Gomes -Director-

Directive No. 05/DSB/DRO/DMA/2018 Page 5 of 5
ANNEX
FOREIGN EXCHANGE POSITION REPORT
Institution:
Financial Year:
Period Start: DD/MM/YY
Period End: DD/MM/YY

USD EUR GBP ZAR CAD NAD SEK OTHER CURRENCIES
1.10.10 Cash
1.10.20 Balances with central banks
1.10.30 Balances with financial institutions
1.20.10 Interbank money market operations
1.20.20 Purchase of third-party securities with resale agreement (Repo)
1.20.30 Sale of third-party securities with resale agreement (Reverse Repo)
1.30.10 Financial assets at fair value through profit or loss
1.30.20 Financial assets available for sale
1.30.30 Investments held to maturity
1.40.10 Fair value hedge
1.40.20 Cash flow hedge
1.40.30 Hedge of a net investment in foreign currency
1.50.10 Inter-branch relationships
1.50.20 Inter-institutional relationships
1.60.10 Income from purchase and sale of foreign currencies receivable
1.60.20 Other values/amounts
1.70.10 Credits/Lending
1.80.10 Other assets of a social or statutory nature
1.80.20 Other assets of a tax nature
1.80.30 Other assets of a civil nature
1.80.40 Other assets of an administrative and commercial nature
1.80.60 Investments in gold and other precious metals
1.80.80 Other assets
1.90.10 Investments in subsidiaries, associates, and joint ventures
1.90.20 Other tangible assets
1.90.30 Intangible assets
1.90.40 Non-owner-occupied assets
2.10.10 Demand deposits
2.10.20 Time deposits
2.10.80 Other deposits
2.10.90 Other loans/borrowings
2.20.10 Interfinancial money market operations
2.20.20 Sale of own securities with repurchase agreement (Reverse Repo)
2.20.30 Sale of third-party securities with repurchase agreement (Reverse Repo)
2.30.10 Issued or endorsed securities and negotiable instruments
2.35.10 Financial liabilities at fair value through profit or loss - Securities
2.35.20 Financial liabilities at fair value through profit or loss - Derivatives
2.40.10 Fair value hedge
2.40.20 Cash flow hedge
2.40.30 Hedge of a net investment in foreign currency
2.50.10 Inter-branch relationships
2.50.20 Inter-institutional relationships
2.60.10 Costs from purchase and sale of foreign currencies payable
2.60.20 Other liabilities/obligations
2.70.10 Subordinated debt
2.70.20 Subordinated debt hybrid instruments
2.70.80 Other subordinated liabilities
2.80.10 Other liabilities of a social or statutory nature
2.80.20 Other liabilities of a tax nature
2.80.30 Other liabilities of a civil nature
2.80.40 Other liabilities of an administrative and commercial nature
2.80.80 Other liabilities
2.90.10 Provisions for probable liabilities of a social or statutory nature
2.90.20 Provisions for probable liabilities of a tax nature
2.90.30 Provisions for probable liabilities of a civil nature
2.90.40 Provisions for probable liabilities of an administrative and commercial nature
2.90.50 Social Fund
2.90.70 Provisions for employee benefit obligations
2.90.90 Provisions for guarantees and commitments assumed
a NET FOREIGN EXCHANGE POSITION b Regulated Own Funds (ROF) (from the previous month) c Limit (ROF * 10%) d Surplus/Deficit (a-c) e Surplus/Deficit in % (d/c)

ACCOUNT CODE ACCOUNT DESCRIPTION
FOREIGN EXCHANGE POSITION REPORT
TOTALS in Kwanza (AKZ) Conversion in EUR

For the purpose of completing the above report, the description relating to each of the accounting accounts listed in this report shall be observed, taking into account the following situations:

1. In item a) "Net foreign exchange position" shall reflect the difference between assets and liabilities in each currency;
2. In item b) "ROF 1" shall be the Regulated Own Funds calculated in the previous month;
3. In item c) "limit (ROF*10)" shall be the daily foreign exchange position limit to be observed by banking financial institutions, in accordance with Notice No. 06/18, dated August 15;
4. In item d) "surplus/deficit" shall be the value calculated in absolute terms;
5. In item e) "surplus/deficit" shall be the value calculated in percentage;
6. The "TOTALS in Kwanza" column shall reflect the counter-value of all foreign currencies;
7. The "Conversion in EUR" column shall reflect the counter-value in EUR calculated in the "TOTALS in Kwanza" column, at the average daily exchange rate to which the information relates.

1 Regulated Own Funds.