BANQUE CENTRALE DU CONGO

THE GOVERNOR

INSTRUCTION No. 25

TO BANKS

(Modification No. 1)

Concerns: Foreign Exchange Adjudications by the Central Bank of Congo

The Central Bank of Congo,

Having regard to Law No. 18/027 of December 13, 2018, on the organization and functioning of the Central Bank of Congo; having regard to Ordinance-Law No. 67/272 of June 23, 1967, relating to the regulatory powers of the National Bank of Congo in matters of foreign exchange regulation, as amended and supplemented by Ordinance-Law No. 87/043 of September 15, 1987;

Considering the need for transparency in the execution of foreign exchange purchase and sale operations and the improvement of the functioning of the foreign exchange market;

Enacts the following provisions:

Article 1: Purpose

This Instruction aims to establish the rules regarding the organization of foreign exchange adjudications by the BCC on the foreign exchange market.

Article 2: Definitions

For the purposes of this Instruction, the following terms are understood as:

• foreign exchange adjudication: an operation by which the Central Bank puts competing banks, buyers and sellers of foreign exchange;
• bilateral adjudication: foreign exchange adjudication during which the Central Bank buys and sells foreign exchange simultaneously;
• unilateral adjudication: foreign exchange adjudication during which the Central Bank buys or sells foreign exchange to banks;
• increment: multiple of the minimum submission amount;
• off-market rate: rate below the average of buyer rates and above the average of seller rates communicated by banks in BCC-FoREx at the opening of the exchange day, reduced or increased by 0.5%, as the case may be;
• BCC: the Central Bank of Congo;
• marginal rate: limit rate that exhausts the amount put up for adjudication;

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• foreign exchange market: place of confrontation of purchase and sale submissions of foreign exchange against the national currency;
• adjudication platform: the electronic platform used by the BCC for the organization of adjudication sessions.

Article 3: Organization of the Adjudication Session

The BCC organizes, at its own initiative, on the foreign exchange market, the purchase and/or sale of foreign exchange against the Congolese franc, through bilateral and/or unilateral adjudications.

Article 4: Participation in Foreign Exchange Adjudication Sessions

Only banks may participate in the foreign exchange adjudication sessions covered by this Instruction.

Article 5: Frequency of Adjudication Sessions

Paragraph 1:

Bilateral foreign exchange adjudication sessions are organized every working day of the week under the following conditions:

• time: Kinshasa time;
• publication of the call for bids: day J-1 at the latest at 16:00;
• transmission of participants' submissions: day J at the latest at 10:00;
• processing of submissions: day J;
• Publication of results: day J at the latest at 11:00.

Paragraph 2:

Unilateral foreign exchange adjudication sessions are organized according to imperatives related to monetary and exchange policy under the following conditions:

• time: Kinshasa time;
• publication of the call for bids: day J at the latest at 12:00;
• transmission of participants' submissions: day J at the latest at 13:00;
• processing of submissions: day J;
• publication of results: day J at the latest at 14:00.

Paragraph 3:

The BCC may organize more than one bilateral or unilateral adjudication session during the same day.

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Article 6: Publication of Adjudication Session Notices

Paragraph 1:

On the working day preceding the bilateral adjudication session or on the day of the intended unilateral adjudication, the BCC publishes a notice regarding it on its adjudication platform. In the event of a malfunction of its platform, recourse may be had to other appropriate means of communication, including a written letter, email, telephone calls, or SMS.

Paragraph 2:

This notice, prepared according to the model in Annex 1 and 2, informs in particular:

• the number of the adjudication session;
• the date and deadline for depositing participants' submissions;
• the type of adjudication session: bilateral with multiple rates or unilateral with a single rate;
• the competitive adjudication method;
• the value date of the operation: day J+2 at the latest;
• the maximum number of submissions per participant for purchase and/or sale;
• the minimum amount per submission and multiples of this amount (the increment);
• the format of the exchange rate.

Article 7: Transmission of Submissions

Paragraph 1:

Purchase and/or sale submissions of foreign exchange are submitted in the adjudication platform, in the format in Annex 3.

Paragraph 2:

No valid submission may be withdrawn or modified after the deadline for receipt of submissions.

Paragraph 3:

Each participant:

• indicates the amount it wishes to buy and/or sell as well as the proposed exchange rate for each submission. Submissions presented are firm and irrevocable after the submission closing time;

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• is prohibited from introducing submissions at rates manifestly outside the market quotation.

Paragraph 4:

During the processing of an adjudication session:

• the system proceeds to the exclusion of offers formulated at the off-market rate;
• no participant may receive more than 20% of the envelope adjudicated by the BCC.

The 20% threshold applies where the total amount submitted by banks is greater than the envelope put up for adjudication by the BCC.

Submissions are retained progressively according to rates and the threshold applied based on the amount of the remaining envelope due.

When a uniform rate is proposed by more than one participant, the threshold applies to the amount remaining due to all participants without regard to the volume requested.

Paragraph 5:

The maximum final allocation amount for a retained bidder is 20% of the envelope.

This amount may exceed the 20% threshold when:

• the total submitted amount is less than the envelope put up for adjudication by the BCC. In this case, all submissions are automatically retained.
• the total amount submitted by banks is greater than the available envelope and the application of said threshold does not allow absorbing the entirety of that put up for adjudication by the BCC in case of low participation.

Paragraph 6:

At the marginal rate, the remaining amount to exhaust the envelope put up for adjudication by the BCC is distributed proportionally to the submissions retained after application of the 20% threshold.

Paragraph 7:

For each submission, the exchange rate (CDF per relevant currency) is expressed up to four digits after the decimal point.

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Article 8: Processing of Submissions

Paragraph 1:

The Foreign Exchange Adjudication Committee, abbreviated "CAD", established for this purpose within the BCC, is responsible, among other things, for processing the submissions received, ensuring their conformity with the adjudication notice and this Instruction.

To this end, the CAD proceeds via the BCC's information system:

• processing participants' submissions;
• discovering the marginal rate of the adjudication; and
• publishing the results.

Paragraph 2:

At the end of each foreign exchange adjudication session, the CAD draws up an internal minutes signed by all members in accordance with the models included in Annexes 7, 8, and 9 of this Instruction.

Article 9: Analysis of Submissions

Paragraph 1:

Each submission retained, at the end of a bilateral foreign exchange adjudication session, is served according to the American auction method, i.e., at the rate proposed by the bidder.

Paragraph 2:

Unilateral foreign exchange adjudication is settled according to the Dutch auction method. All submissions retained, at the end of this operation, are served at the marginal rate that exhausts the amount put up for adjudication. Submissions are ranked:

• in descending order of proposed rates, in the case of sale of foreign exchange;
• in ascending order of proposed rates, in the case of purchase of foreign exchange.

Article 10: Publication of Results

Paragraph 1:

At the close of each adjudication session, all retained bidders are notified of their own purchase and/or sale results of foreign exchange, via the BCC platform and, recorded in a minutes established according to the models in Annexes 7, 8, or 9 of this Instruction, as the case may be.

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Paragraph 2:

The aggregated results of the foreign exchange adjudication session are published by the BCC in its information system, on the BCC website, or via any other means of communication, in the formats in Annexes 4, 5, or 6 of this Instruction, as the case may be.

A confirmation message of the purchase and/or sale of foreign exchange is sent to each retained bidder electronically or by handwritten letter, according to the models of individual notification notices in Annexes No. 10 and No. 11 of this Instruction.

Paragraph 3:

For the application of paragraph 2 of this article, banks communicate to the BCC the contact details of the person(s) to whom these messages are validly notified, whether electronically or by handwritten letter, without it being necessary for both notifications to occur simultaneously, one of them being amply sufficient.

Article 11: Settlement of Transactions

Paragraph 1:

The BCC acts as counterparty to all transactions during the adjudication session.

Paragraph 2:

On the value date specified in the adjudication notice:

• the bidder who sold the foreign exchange must credit the BCC's account with the amount due, according to the payment instruction. The participant's account is credited with the CDF equivalent on the same value date;
• the BCC credits the account of the bidder who purchased the foreign exchange, according to the payment instruction. The national currency account of said bidder is debited with the CDF equivalent on the same value date.

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Article 12: Applicable Sanctions

Without prejudice to sanctions provided for by other legal and/or regulatory provisions, the retained bidder who does not honor its obligations arising from an adjudication session is sanctioned in accordance with the BCC's current Tariffs and Conditions.

Article 13: Cancellation of a Session

In the event of collusion between bidders, the BCC may cancel the entire adjudication session.

Article 14: Transitional Provisions

In the event of unavailability of the adjudication platform, participants are authorized to use the equipment of the BCC's Directorate of Banking and Market Operations or the IT department within its purview, to make their submissions.

Article 15: Final Provisions

This Instruction repeals all previous provisions contrary to it and enters into force on the date of its signature.

Done in Kinshasa, on JUL. 11, 2024

MALANGU KABEDI MBUYI
Governor

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ANNEX 1: NOTICE OF A BILATERAL FOREIGN EXCHANGE ADJUDICATION SESSION

In accordance with Instruction No. 25, Modification No. 1 of ../June 2024, relating to foreign exchange adjudications, the Central Bank of Congo (BCC) announces the following adjudication for the simultaneous purchase and sale of US dollars. The adjudication will take place on dd/mm/yyyy and is reserved for eligible participants.

Adjudication No.	ABD..........dd/mm/yyyy
minimum volume of a submission for purchase or sale	USD 50,000
increment (subject to respect of the minimum)	USD 10,000
deadline for depositing submissions	dd/mm/yyyy hh:00 at the latest
settlement date (value date)	dd/mm/yyyy (Submission Date +2)
maximum number of purchase submissions per participant	4
maximum number of sale submissions per participant	4
format of the exchange rate	Number of CDF per USD

The specific conditions are as follows:

• submissions must be transmitted using the format provided by the BCC. An incomplete or incorrect submission or transmitted in another format may be rejected by the BCC at its discretion;
• submissions must be presented via the BCC-FoREx application;
• participants may make, simultaneously, up to four purchase and sale submissions.

The price (USD/FC) for each submission must be rounded to four decimal places.

Done in Kinshasa, on JUL. 11, 2024

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ANNEX 3. MODEL FOR SUBMISSION INTRODUCTION BY BANK

(purchase/sale of USD against CDF)

bank	full name
		amount	price (1USD=x CDF)
purchase of USD (commercial bank buys USD and BCC sells USD)		1. 2. 3. 4.	1. 2. 3. 4.
sale of USD (commercial bank sells USD and BCC buys USD)		1. 2. 3. 4.	1. 2. 3. 4.
submission date

Done in Kinshasa, on JUL. 11, 2024

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ANNEX 5: RESULT OF THE UNILATERAL FOREIGN EXCHANGE PURCHASE ADJUDICATION SESSION

(NUMBER: ...........)

(Commercial bank sells USD)

ITEMS	RECEIVED	RETAINED
number
volume (millions USD)
rate range (USD/CDF)
purchase allocation at marginal price ()

The marginal rate of the adjudication session is: USD/CDF XXX

The BCC bought XXX USD at the adjudication session.

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ANNEX 6: RESULT OF THE UNILATERAL FOREIGN EXCHANGE SALE ADJUDICATION SESSION

(NUMBER: ...........)

commercial bank buys USD

ITEM	RECEIVED	RETAINED
number
volume (millions)
rate range (USD/CDF)
sale allocation at marginal price ()

The marginal rate of the adjudication session is: USD/CDF XXX

The BCC sold XXX USD at the adjudication session.

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ANNEX 7: MINUTES OF THE BILATERAL FOREIGN EXCHANGE ADJUDICATION SESSION (SALE)

FOREIGN EXCHANGE ADJUDICATION COMMITTEE

In the year........., on the............th day of the month of ..............., the Central Bank of Congo proceeded to the organization of a bilateral foreign exchange adjudication session, with the following characteristics:

Identification No.	ABDAAAAMMJJ: #
minimum amount	USD 50,000.00
increment	USD 10,000.00
transaction date
settlement date

The following submissions were rejected for the following reasons:
:

After processing the various submissions received, the following results emerge:

commercial bank buys USD:

ITEM	RECEIVED	RETAINED
number
volume (millions USD)
rate range (USD/CDF)
weighted average (USD/CDF)
sale allocation at marginal price ()

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CAD Deliberation:

Natural Marginal Rate	CAD Decision (net purchase, net sale, neutral)	Motivation	Other considerations

The final marginal rate of the adjudication session is: USD/CDF XXXX.

The BCC bought XXX USD at the adjudication session.

The BCC sold XXX USD at the adjudication session.

After processing the various submissions received, the following results emerge:

commercial bank sells USD:

ITEM	RECEIVED	RETAINED
number
volume (millions USD)
rate range (USD/CDF)
weighted average (USD/CDF)
sale allocation at marginal price ()

CAD Deliberation:

Natural Marginal Rate	CAD Decision (net purchase, net sale, neutral)	Motivation	Other considerations

The final marginal rate of the adjudication is: USD/CDF XXXX.

The BCC sold XXX USD in the adjudication.

The BCC bought XXX USD in the adjudication.

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ANNEX 8: MINUTES OF THE UNILATERAL FOREIGN EXCHANGE ADJUDICATION SESSION (PURCHASE)

FOREIGN EXCHANGE ADJUDICATION COMMITTEE

In the year........., on the............th day of the month of ..............., the Central Bank of Congo proceeded to the organization of a unilateral foreign exchange adjudication session, with the following characteristics:

identification no.	ABDAAAAMMJJ: #
minimum amount	USD 50,000.00
increment	USD 10,000.00
transaction date
settlement date

The following submissions were rejected for the following reasons:

After processing the various submissions received from banks, the following results emerge:

(commercial bank sells USD)

ITEM	RECEIVED	RETAINED
number
volume (millions USD)
rate range (USD/CDF)
weighted average (USD/CDF)

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ANNEX 9: MINUTES OF THE UNILATERAL FOREIGN EXCHANGE ADJUDICATION SESSION (SALE)

FOREIGN EXCHANGE ADJUDICATION COMMITTEE

In the year........., on the............th day of the month of ..............., the Central Bank of Congo proceeded to the organization of a unilateral foreign exchange adjudication session, with the following characteristics:

Identification No.	AMDAAAAMMJJ: #
minimum amount	USD 50,000.00
increment	USD 10,000.00
transaction date
settlement date

The following submissions were rejected for the following reasons:
:
:

After processing the various submissions received in banks, the following results emerge:

Commercial bank buys USD

ITEM	RECEIVED	RETAINED
number
volume (millions USD)
rate range (USD/CDF)
weighted average (USD/CDF)

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ANNEX 10: BILATERAL FOREIGN EXCHANGE ADJUDICATION SESSION No....of .........

INDIVIDUAL RESULT NOTIFICATION NOTICE

Ref: BCC/ADB/N° (for bilateral foreign exchange adjudications)

ADJ0001819

ABD5-BCC

ADJUDICATION NUMBER	ABD dd/mm/yyyy to dd/mm/yyyy
BIDDER BANK	B.C.D.C
BANK CODE	00011

Total amount (in figures): USD

Detailed as follows:

proposed amount	marginal rate	retained amount	CDF equivalent

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ANNEX 11: UNILATERAL FOREIGN EXCHANGE ADJUDICATION SESSION No...of.....

INDIVIDUAL RESULT NOTIFICATION NOTICE

Ref: BCC/AMB/N° (for unilateral foreign exchange adjudication: BCC buys/sells USD)

ADJ0001819

AMD5-BCC

ADJUDICATION NUMBER	AMD dd/mm/yyyy to dd/mm/yyyy
BIDDER BANK	B.C.D.C
BANK CODE	00011

Total amount (in figures): USD

Detailed as follows:

Proposed Amount	Marginal Rate	Retained Amount	CDF Equivalent

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