Instruction No. 01/2021 of February 2, 2021: Monetary Policy - Custody Rate Applicable to Free Reserves Deposited at the National Bank of Angola

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INSTRUCTION NO. 01/2021 of February 2, 2021
ASSUNTO: MONETARY POLICY

• Custody Rate Applicable to Free Reserves Deposited at the National Bank of Angola

In order to stimulate financial resource intermediation between Commercial Banks and economic agents, aiming to promote economic diversification and, thereby, reduce excessive dependence on the importation of goods and services, as well as contribute to the sustainability of the country's external accounts through national production covering internal consumption needs; Under the combined provisions of paragraph 1 of Article 26 and Article 51, both of Law No. 16/10 of July 15, the National Bank of Angola Act;

I DETERMINE:

1. Object and Scope
   This Instruction establishes the Custody Rate for free reserves of Commercial Banks domiciled at the National Bank of Angola.

2. Free (Excess) Reserves
   2.1. The free reserves of Commercial Banks represent the excess of mandatory reserves deposited at the National Bank of Angola.
   2.2. For the purposes of this Instruction, free reserves are divided into two levels, namely:
   a) Level 1, exempt from the custody rate; and, b) Level 2, subject to the custody rate, whereby:

CONTINUATION OF INSTRUCTION NO. 01/2021 Page 2 of 3
i. Level 1 is exempt from the custody rate, which corresponds to Kz 3,000,000,000 (Three Billion Kwanzas);
ii. Level 2 is subject to the custody rate, corresponding to the balance of excess reserves net of the amount established in Level 1.

3. Custody Rate Payable on Free Reserves
   The custody rate is:
   a) 0.1% (zero point one percent) whenever the balance of free reserves falls between Kz 3,000,000,000 (Three Billion Kwanzas) and Kz 6,000,000,000 (Six Billion Kwanzas); and, b) 0.2% (zero point two percent) whenever the balance of free reserves exceeds Kz 6,000,000,000 (Six Billion Kwanzas).

4. Calculation Base
   The amount corresponding to the custody rate due by each Commercial Bank is calculated daily on the closing daily balance of free reserves deposited at the National Bank of Angola, minus the amount referred to in (i) of paragraph b) of point 2.2 of this Instruction.

5. Payment
   The amount due by each Commercial Bank is debited from its respective account with the SPTR on the next business day following calculation.

6. Revocation
   Instruction No. 14/20 of August 4, regarding the Custody Rate applicable to Excess Reserves of Commercial Banks Deposited at the National Bank of Angola, is hereby revoked.

CONTINUATION OF INSTRUCTION NO. 01/2021 Page 3 of 3
7. Doubts and Omissions
Doubts and omissions arising from the interpretation and application of this Instruction are resolved by the National Bank of Angola.

8. Entry into Force
   This Instruction enters into force on the date of its publication.
   PUBLISH.
   Luanda, February 2, 2021.
   THE GOVERNOR
   JOSÉ DE LIMA MASSANO