Joint Directive No. 07/DSB/DRO/DMA-2018, dated January 2, 2019

THE GOVERNOR
JOINT DIRECTIVE NO. 07/DSB/DRO/DMA/2018
ORIGIN: Banking Supervision Department (DSB)
Department of Regulation and Organization of the Financial System (DRO) Assets Market Department (DMA)

DATE: 02/01/2019
SUBJECT: Foreign Exchange Position Limit

• Daily Information
• Commercial Banks

Whereas it is necessary to provide greater transparency to foreign exchange operations carried out by Commercial Banks, hereinafter referred to as Banks; Considering the provisions of Notice No. 12/2018 regarding the Foreign Exchange Position Limit; This Directive serves to establish the following:

1. Banks must submit daily the "DAILY FOREIGN EXCHANGE POSITION" report, as set forth in Annex I, which forms an integral part of this Directive, and its respective daily closing balance sheet, which must contain information relating to the last preceding business day.
2. The report referred to in the preceding paragraph must include the amounts of the elements specified in Annex I to this Directive, which forms an integral part thereof.
3. The report and its respective daily closing balance sheet must be submitted electronically by 8:30 a.m., using the Financial Institutions Supervision System (SSIF), in compliance with the provisions, requirements, and specifications of the XML message available on the SSIF Portal regarding the foreign exchange position report and its respective daily closing balance sheet.

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4. For the purposes of the preceding paragraph, while the SSIF is not yet available for sending and receiving information under this Directive, Banks must submit it to the BNA in Excel format via the electronic address: pcambial-DMA-DRO@bna.ao.
5. The foreign exchange position must be calculated in Euros (EUR).
6. For the purposes of the preceding paragraph, when converting foreign exchange positions in different currencies to Euros (EUR), the reference average exchange rate in force on the day to which they refer must be applied.
7. A breach of the long or short foreign exchange position limit is deemed to have occurred when it exceeds, in absolute terms, the limit established in Notice No. 12/2018 of December 21 regarding the Foreign Exchange Position Limit.
8. Banks must comply with the overall foreign exchange position limit of 5% (five percent), in accordance with Notice No. 12/2018 of December 21 regarding the Foreign Exchange Position Limit, regardless of whether the position is long or short.
9. Whenever a long position is calculated, Banks must sell the excess foreign exchange position, either in the interbank foreign exchange market or to the National Bank of Angola (BNA), immediately after reporting the Foreign Exchange Position Report.
10. In the case of selling the excess foreign exchange position in the interbank market at a freely negotiated rate between the parties, Banks must notify the BNA of such sale by completing Annex II, which forms an integral part of this Directive, and submitting it via the electronic address: pcambial-DMA-DRO@bna.ao.

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11. Directive No. 05/DSB/DRO/DMA-2018 of August 20 is hereby revoked.
12. This Directive enters into force on the date of its publication.

Luanda, January 2, 2019.
BANKING SUPERVISION DEPARTMENT

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Fernando Panzo
DEPARTMENT OF REGULATION AND ORGANIZATION OF THE FINANCIAL SYSTEM ___________________________________________ Carla Gomes ASSETS MARKET DEPARTMENT ___________________________________________ Maria Cândida Sambingo

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ANNEX I
FOREIGN EXCHANGE POSITION REPORT

For the purpose of completing the above report, the description for each of the accounting accounts listed in this report must be observed, taking into account the following situations:

1. In item a) "Net foreign exchange position" must reflect the difference between assets and liabilities in each currency;
2. In item b) "FPR" the Regulatory Own Funds calculated in the previous month must be considered;
   1 Regulatory Own Funds.

Institution:
Financial Year:
Period Start:
Period End:
USD EUR GBP ZAR CAD NAD SEK OTHER CURRENCIES

1.10 Cash and Balances
1.20 Investments in Central Banks and Other Credit Institutions
1.30 Bonds and Securities
1.40 Hedging derivatives with positive fair value
1.50 Credits in the Payment System
1.60 Foreign Exchange Operations
1.70 Credits to Customers
1.80 Other assets
1.90 Other Fixed Assets

2.10 Customer Funds and Other Loans
2.20 Funds from Central Banks and Other Credit Institutions
2.30 Liabilities represented by securities
2.35 Financial liabilities at fair value through profit or loss
2.40 Hedging derivatives with negative fair value
2.50 Obligations in the payment system
2.55 Non-current liabilities held for sale
2.60 Foreign Exchange Operations
2.65 Financial liabilities associated with transferred assets
2.70 Subordinated liabilities
2.80 Other liabilities
2.90 Provisions

a NET FOREIGN EXCHANGE POSITION b Regulatory Own Funds (FPR) (from the previous month) c Limit (FPR * 5%) d Surplus/Deficit (a-c) e Surplus/Deficit in % (d/c)

ACCOUNT CODE | ACCOUNT DESCRIPTION
FOREIGN EXCHANGE POSITION REPORT TOTALS in Kwanza CONVERSION in EUR

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3. In item c) "limit (FPR * 5%)" the daily foreign exchange position limit to be observed by banking financial institutions must be considered, in accordance with Notice No. 12/2018;
4. In item d) "surplus/deficit" the value calculated in absolute terms must be considered;
5. In item e) "surplus/deficit" the value calculated in percentage must be considered;
6. The "Totals in Kwanza" column must reflect the counter-value of all foreign currencies;
7. The "Conversion in EUR" column must reflect the counter-value in EUR calculated in the "Totals in Kwanza" column, at the average daily exchange rate to which the information refers.

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ANNEX II

SELLER: BUYER:
EXCHANGE RATE: DATE AMOUNT:
(PLACE AND DATE)

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(SELLER) (BUYER)

FOREIGN EXCHANGE OPERATION CONTRACT
BUYER BANK: CONTRACT NO.:
BANK CODES
CURRENCY CODE:
SELLER BANK:
SELLER'S BANKING CORRESPONDENT:

LUANDA,
AMOUNT IN FOREIGN CURRENCY (M/E):
M/E IN WORDS:
AMOUNT IN NATIONAL CURRENCY (M/N):
M/N IN WORDS:
BUYER'S BANKING CORRESPONDENT: