Regulatory Alerts1993-11-16
Notice No. 12/93 of December 16
The National Bank of Angola issued Notice No. 12/93 to amend Article 10 of Notice No. 6/92, establishing clarified operational rules for Exchange Houses. The regulation authorizes these institutions to conduct foreign currency and travel check purchases and sales at free market rates for both residents and non-residents, while mandating the opening of specific domestic and foreign currency accounts with resident credit institutions. Furthermore, it restricts Exchange Houses to funding their treasury operations exclusively through share capital and trading profits, explicitly prohibiting the use of New Kwanzas financing for capital replenishment or expansion.
NOTICE NO. 12/93 of December 16 Given the need to establish a clearer definition of the special rules for the operation of Exchange Houses as provided for in Notice No. 6/92 of August 12. Pursuant to the powers conferred by Articles 16(c), 43, and 60 of the Organic Law of the National Bank of Angola, . HEREBY DETERMINE: Article 1 Article 10 of Notice No. 6/92 of August 12 shall be amended to read as follows:
-
In addition to any others that may subsequently be indicated by the National Bank of Angola, Exchange Houses may carry out, at free market rates, purchase and sale operations of foreign banknotes or currencies or travel checks under the conditions set forth in the following paragraphs:
-
In operations with residents, they may: a) Sell foreign banknotes, currencies, or travel checks against New Kwanzas, intended for the payment of expenses related to travel abroad; b) Purchase foreign banknotes, currencies, or travel checks against New Kwanzas.
-
In operations with non-residents, they may: a) Purchase foreign banknotes, currencies, and travel checks against New Kwanzas; b) Sell foreign banknotes, currencies, or travel checks, against New Kwanzas.
-
To regularly conduct their business, Exchange Houses shall: a) Open domestic accounts with resident credit institutions which shall be debited and credited exclusively with New Kwanzas banknotes corresponding to the purchase and sale of foreign currency conducted with clients;
b) Open deposit accounts denominated in foreign currency with resident credit institutions for purposes they deem appropriate, and specifically for the foreign exchange coverage of travel checks sold to clients.
- Exchange Houses, focused on manual foreign exchange trading, shall operate using their respective share capital and profits resulting from the purchase and sale of foreign currency, and may not resort to New Kwanzas financing to replenish or increase their treasury funds. Article 2 This notice shall enter into force immediately. PUBLISH Luanda, December 16, 1993. THE GOVERNOR