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2020-10-14

Instruction No. 17/2020 of October 15 – Exchange Rate Policy: Limits on Foreign Exchange Operations for Goods Imports

The Banco Nacional de Angola adjusts foreign exchange payment limits for goods imports by permitting importers to freely negotiate payment modalities without annual or per-operation caps, while allowing advance payments up to USD 50,000 per operation or 10% under documentary credits (requiring irrevocable bank guarantees for higher amounts). Banking Financial Institutions must ensure strict compliance with exchange rate legislation and anti-money laundering/counter-terrorist financing regulations before executing any foreign currency transactions. This Instruction, effective upon publication, revokes the previous limits established in Instruction No. 18/19 and clarifies that all stated USD limits apply to equivalent foreign currency values.

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INSTRUCTION NO. 17/2020 of October 15 SUBJECT: EXCHANGE RATE POLICY − Limits on Foreign Exchange Operations for Goods Imports

Within the framework of market normalization, the Banco Nacional de Angola has determined the need to adjust the limits applicable to the various payment instruments used in foreign exchange operations for goods imports;

In exercise of the competence conferred upon me by the combined provisions of paragraph 2 of Article 28.º of Law No. 5/97, dated July 27 – Exchange Rate Law, and Article 40.º of Law No. 16/10, dated July 15 – Banco Nacional de Angola Law.

I DETERMINE:

  1. Payment Modalities Importers may freely negotiate payment modalities in the importation of goods, which are not subject to any annual or per-operation limits, except as provided in paragraph 2 of this Instruction.

  2. Advance Payments or Down Payments 2.1. The following advance payments or down payments are permitted: a) Up to USD 50,000.00 (fifty thousand United States dollars) per operation; b) Up to 10% (ten percent) of the total amount of the operation when under a documentary credit, as stipulated in paragraph b) of No. 1 of Article 7.º of Notice No. 5/18, dated July 17.

2.2. For advance payments or down payments exceeding the values defined in the preceding subparagraphs, the exporter must present an irrevocable bank guarantee for good performance of equal value, issued by a Foreign Bank recognized by the Importer's Banking Financial Institution.

CONTINUATION OF INSTRUCTION NO. 17/2020 Page 2 of 2 3. Other Conditions Before carrying out any foreign exchange operation for the payment of imports, regardless of whether it is made through the purchase of foreign currency or the use of the importer's own funds in that currency, Banking Financial Institutions must ensure strict compliance with the requirements set forth in exchange rate legislation and regulations regarding anti-money laundering and counter-terrorist financing.

  1. Currency The limits expressed in United States Dollars apply to equivalent values in any other foreign currency.

  2. Queries and Omissions Queries and omissions resulting from the interpretation of this Instruction are clarified by the Banco Nacional de Angola.

  3. Sanctions Violation of the provisions set forth in this Instruction subjects Banking Financial Institutions to penalties, under the Framework Law of Banking Financial Institutions and the Exchange Rate Law.

  4. Revocation Instruction No. 18/19, dated October 25, on Limits for Foreign Exchange Operations for Goods Imports, is hereby revoked.

  5. Entry into Force This Instruction enters into force on the date of its publication.

PUBLISHED. Luanda, October 15, 2020.

THE GOVERNOR JOSÉ DE LIMA MASSANO

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