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2017-12-01

Instruction 05-2017 of December 1st on Exchange Rate Policy

The Governor of the Banco Nacional de Angola issued Instruction 05-2017 to revoke specific prior directives and adjust foreign exchange regulations to better align with monetary policy objectives. The instruction mandates the immediate release of national currency funds previously held as collateral at the central bank and abolishes the requirement for such collateral at commercial banks. Furthermore, it restricts foreign exchange operations to clients with an active Tax Identification Number and establishes penalties for non-compliance by financial institutions.

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INSTRUCTION NO. 05/2017 of December 1st SUBJECT: EXCHANGE RATE POLICY

  • Revocation of Instruction No. 12/15 and points 4.1.4, 4.1.5, 4.1.6, and 4.1.7 of Instruction No. 10/2015, of June 4th

Considering that the procedures for participation and execution of foreign currency purchase and sale sessions were established by Instruction No. 10/2015, of June 4th;

There being a need to better reconcile the operationalization of the foreign exchange market with the objectives of monetary and exchange rate policies;

Taking into account the need to adjust exchange rate regulation regarding the process of purchasing foreign currency for the realization of foreign exchange operations for goods, invisible current transactions, capital, and sales to Exchange Houses;

In the exercise of the competence conferred upon me by Article No. 51 of Law No. 16/10, of July 15, the Law of the Banco Nacional de Angola.

I DETERMINE:

  1. Instruction No. 12/2015, of June 24, and points 4.1.4, 4.1.5, 4.1.6, and 4.1.7 of Instruction No. 10/2015, of June 4, are revoked.

  2. With the entry into force of this Instruction, national currency resources held captive at the Banco Nacional de Angola for the purpose of acquiring foreign currency are immediately mobilized.

  3. Likewise, the obligation to constitute captive national currency resources in the applicant's account for the purpose of purchasing foreign currency at Banking Financial Institutions ceases.

  4. Banking Financial Institutions may only execute foreign exchange operations ordered by clients who possess an active Tax Identification Number (NIF).

  5. Non-compliance with the provisions of this Instruction subjects Banking Financial Institutions to penalties, in accordance with the Basic Law of Financial Institutions and the Exchange Law.

  6. Doubts and omissions resulting from the interpretation and application of this Instruction are resolved by the Banco Nacional de Angola.

  7. This Instruction enters into force on the date of its publication.

PUBLISH. Luanda, December 1, 2017. THE GOVERNOR JOSÉ DE LIMA MASSANO

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