Instruction No. 09/91: Exchange Rate Policy - Floating Exchange Rate Market Regulation

INSTRUCTION NO. 09/91
SUBJECT: EXCHANGE RATE POLICY
Floating Exchange Rate Market
. Regulation
Whereas the Floating Exchange Rate Market, established by Notice No. 04/91 and regulated by Instructions Nos. 07 and 08/91, aims to mandate, in a first phase, the different foreign exchange operations not supported by the General State Budget or not benefiting from the official rate, as established in the economic policy adjustment measures within the context of the Government Action Plan; Taking into account that the good performance of the aforementioned market in the first weeks of implementation allows for the execution of operations of other modalities, beyond those provided for in the aforementioned Instructions; In the exercise of the competence conferred upon me by the current Organic Law. I HEREBY DETERMINE:
Article 1.
Accredited Institutions authorized to carry out the following foreign exchange sale operations in the Floating Exchange Rate Market, in addition to those already authorized in Instructions Nos. 07 and 08/91:
I – FOREIGN EXCHANGE SALE – EDUCATIONAL, SCIENTIFIC OR CULTURAL PURPOSES

1. Sale of foreign currency intended for monthly remittances equivalent to up to US$ 2,500.00 (two thousand five hundred United States dollars), for the maintenance of individuals domiciled in the Country who are abroad for a maximum period of 90 days, fulfilling programs of an educational, scientific, or cultural nature. These operations may be carried out directly with accredited banking institutions, upon presentation by the buyer of a document proving the purpose of the trip and the duration of the event.
2. The amount pertaining to the first month of stay abroad may be acquired before departure, with subsequent monthly payments depending on the presentation, by a representative of the interested party, of a document from the establishment where the study program is carried out, attesting to attendance.
3. 1. Upon finding that more than one remittance of this kind has been made in the same period, in favor of the same beneficiary abroad, or in an amount exceeding the limit set in the preceding paragraph, the respective senders shall be held responsible before the Central Bank for the necessary measures to return to the Country the excess amount transferred.
4. The documents referred to in the preceding paragraphs shall form the foreign exchange operation file and shall be kept on record by the Accredited Institution for the period established in point No. 11 of the Regulation issued by Instruction 07/91.
   I - FOREIGN EXCHANGE SALE - HEALTH TREATMENT
5. Individuals who, under current legislation, meet the requirements for treatment abroad through the National Health Board, whether at the State's expense or their own, continue to acquire foreign currency at the official rate. Other individuals who do not meet the aforementioned requirements may also acquire foreign currency, but at the floating rate, intended to cover medical-hospital expenses abroad within the limits and conditions set out in the following paragraphs.
6. In addition to purchases made based on Title V of Instruction 07/91, and subject to a limit of US$ 5,000.00 (five thousand United States dollars), the foreign exchange sale referred to in the preceding paragraph shall be carried out independently of prior authorization from the Central Bank, upon:
   a) presentation of a certificate from a medical practitioner practicing in the Country, recommending medical-hospital treatment abroad and indicating the name of the illness or its international code; b) declaration from the foreign doctor or clinic where the treatment will take place, except in cases of recognized urgency;
7. Subject to the limit referred to in paragraph 5, the sale of foreign exchange for reimbursement of expenses for treatment already carried out is also permitted, by payment order directly in favor of the institution or the medical provider of assistance abroad, upon presentation of an invoice or debit note, on which the following details must be recorded:

• foreign exchange sale form number;
• date of sale and the amount in foreign currency;
• name and location of the accredited institution.

7. 1. Applications for the purchase of foreign currency for medical treatment that do not meet the requirements of paragraph 5 must be submitted to the Central Bank in advance.
8. Documents proving medical-hospital expenses must be presented to the Bank within 60 days of the beneficiary's return to the Country, under penalty of sanctions under the Law and prohibition from making new transfers.
   III- FOREIGN EXCHANGE OPERATIONS - UNILATERAL TRANSFERS PRELIMINARY PROVISIONS
9. The Accredited Banking Institution may carry out foreign exchange operations corresponding to unilateral transfers from the Country to abroad, and vice versa, understood as those that, due to their unilateral nature, do not involve the counterparty providing goods or services by the payment beneficiary.
10. Subject to the limits and conditions stipulated for each type of payment, foreign exchange rates in this Market relating to the following do not require prior authorization from the Central Bank:
    a) contributions to professional/class associations; b) maintenance of individuals abroad.
11. Foreign exchange purchases resulting from the inflow of foreign currency via unilateral transfers from abroad to the Country are also processed under this Title, both in favor of individuals and legal entities, provided they relate to:
    a) donations; b) maintenance of individuals residing or domiciled in the Country; c) prizes won in sports competitions or other events, under any title; d) contributions to professional/class associations; e) inheritances and bequests exclusively for individuals; f) retirements and pensions; g) property exclusively for individuals; h) indemnities not covered by insurance.
12. When carrying out the foreign exchange purchase under the preceding item:
    a) the Accredited Banking Institution must identify the client selling the foreign currency when it is a legal entity, making the relevant notes on the purchase form; b) if the client selling the foreign currency is an individual, foreign exchange purchases may also be carried out by accredited non-banking institutions.
13. The national currency equivalent of foreign exchange sale operations must be debited to a deposit account in the buyer's name or paid by cheque issued by them.
    CONTRIBUTIONS TO PROFESSIONAL/CLASS ASSOCIATIONS
14. Subject to the provisions of this Section, the Accredited Banking Institution may process requests submitted by individuals (up to an annual limit equivalent to US$ 2,000.00) or legal entities (up to an annual limit equivalent to US$ 10,000.00), for financial transfers intended to pay admission fees or membership contributions to professional/class associations headquartered abroad.
15. The financial transfers referred to in the preceding item may only be carried out via payment order or cheque, in favor of professional/class associations abroad, whose objectives are compatible with the sender's field of activity.
16. The foreign currency sales referred to are conditional upon presentation to the Accredited Banking Institution of an invoice, debit note, or equivalent document, containing at least the following elements:
    a) the name of the professional/class association abroad; b) the amount of the remittance; c) the period to which the payment refers, if it is a contribution.
17. A copy of the document referred to in the preceding item must be kept on file by the selling Banking Institution, in the manner and timeframes provided for in this Regulation.
    MAINTENANCE OF INDIVIDUALS
18. Subject to the provisions of this Section, financial transfers may be made up to a monthly limit of US$ 1,500.00 (one thousand five hundred United States dollars), for the maintenance of Angolans and foreigners residing abroad who are direct lineal ascendants or descendants, and financially dependent, on residents in the Country.
    Transfers under the preceding paragraph depend on the presentation of a residence certificate every six months and a document proving the family relationship.
    Article 2
    This Instruction enters into force immediately.
    Luanda, on November 29, 1991.
    THE GOVERNOR
    FERNANDO ALBERTO DA GRAÇA TEIXEIRA