Instruction No. 07/2022 of June 27: Conduct of Open Market Operations by Non-Bank Entities

INSTRUCTION NO. 07/2022 of June 27
SUBJECT: MONETARY POLICY

• Conduct of Open Market Operations by Non-Bank Entities

With the objective of increasing the efficiency of Monetary Policy instruments, the Banco Nacional de Angola has decided to expand the base of entities participating in Open Market Operations, aiming to broaden the reach of Occasional Liquidity Regulation Operations, in accordance with the current Monetary Policy Operational Framework.

In this regard, it has been decided to allow the participation of non-bank entities, namely Insurance Companies, Pension Funds, and State Entities in Open Market Operations, subject to compliance with certain requirements.

In accordance with Article 39 of Law No. 24/21, dated October 18, the Banco Nacional de Angola Law, and in the exercise of the competence conferred upon me by Article No. 54 of said Law,

I DETERMINE:

1. Object and Scope
   This Instruction establishes:
   a) The conditions for participation in Open Market Operations by Insurance Companies, Pension Funds, and State Entities. b) The rules and procedures that the aforementioned entities must observe for participation in Open Market Operations with the Banco Nacional de Angola.

2. Eligible Maturities
   For the purposes of this Instruction, only Open Market Operations with a maturity exceeding 60 days are eligible.

CONTINUATION OF INSTRUCTION NO. 07/2022 Page 2 of 2

3. Access to Open Market Operations
   3.1. Insurance Companies, Pension Funds, and State Entities may request authorization from the Banco Nacional de Angola to participate in Open Market Operations.
   3.2. Applications for participation in Open Market Operations to the Markets Department (DME) must be submitted via email at dme@bna.ao, and their communication must identify an account held with a commercial bank for clearing agent purposes.
   3.3. The Banco Nacional de Angola evaluates the application and communicates its decision within a maximum period of 5 business days from receipt of the application or any additional elements subsequently requested, necessary to complete its evaluation.
   3.4. Following approval by the Banco Nacional de Angola, the entities covered by this Instruction must take the necessary actions with the Banco Nacional de Angola to open and operationalize an account in the Asset Management System (SIGMA).

4. Doubts and Omissions
   Doubts and omissions arising from the interpretation and application of this Instruction are resolved by the Banco Nacional de Angola.

5. Entry into Force
   This Instruction enters into force on the day following its publication.

PUBLISH.

Luanda, June 27, 2022.

THE GOVERNOR
JOSÉ DE LIMA MASSANO