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1996-10-11

Instruction No. 07/96 on Monetary Policy – Amendment to Mandatory Reserves Regulations

The National Bank of Angola issued Instruction No. 07/96 to partially amend the mandatory reserves regime established under Notice No. 01/91 and Instruction No. 01/95. The directive sets the mandatory reserves coefficient at forty percent and establishes a penalty framework for reserve shortfalls, calculated using the Monetary Correction Index plus double the highest active operation rate. Effective immediately for October compliance, it mandates daily balance monitoring, penalty collection via bank reserve account debits on the last business day of the following month, and formal notification to affected institutions.

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INSTRUCTION NO. 07/96 SUBJECT: MONETARY POLICY

  • Mandatory Reserves .Amendment to the Regulations

Considering the need to adjust the currency in circulation, in light of other economic measures adopted;

This Instruction complements the definition of the mandatory reserves regime to be established in accordance with the provisions of Notice No. 01/91 issued by the Governor of the National Bank of Angola, as addressed in Instruction No. 01/95, partially amending it. ARTICLE 1 Article 4 of Instruction No. 01/95, dated June 23, 1995, shall henceforth read as follows: “ Article 4 - Coefficient of Mandatory Reserves The coefficient of mandatory reserves is forty percent (40%). ARTICLE 2 Article 8 of Instruction No. 01/95, dated June 23, 1995, shall henceforth read as follows:

“ Article 8 - Penalties

  1. Without prejudice to other measures that may be adopted, the National Bank of Angola shall charge the Monetary Correction Index corresponding to the period in which the shortfall occurs, added to a rate equivalent to double the highest rate charged on active operations, on:

  2. the reserve shortfall determined at the end of each constitution period; and

  3. the daily value falling below the minimum balance established for accounts of institutions with the BNA.

  4. The incidence period for these penalties shall equal the number of days elapsed in the period, if the shortfall is determined by average or by the number of days the balance remains below the permitted minimum, with the respective charges being collected on the last business day of the month following the occurrence, via debit to the Bank Reserves account of the banking institution.

  5. The affected institutions shall be notified by the BNA whenever penalties under point No. 1 above apply.” ARTICLE 3 This Instruction takes immediate effect, applying to the Mandatory Reserves to be fulfilled already in this month of October. Luanda, on October 8, 1996. THE GOVERNOR SEBASTIÃO BASTOS LAVRADOR

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