Notice No. 08/96 of 17 April

NOTICE NO. 08/96

of 17 April

.

In the context of the economic policy readjustment, it is imperative to initiate the process

of aligning exchange houses with a macroeconomic equilibrium position;

Whereas Article 42, paragraphs a) and e), of the Organic Law of the Bank of Angola, it is

their respective competence to define the principles governing foreign currency operations,

establish exchange rates, and publish them;

In exercise of the authority conferred upon me by the Organic Law of the Bank of Angola;

I HEREBY DETERMINE:

Article 1.

[I] institute a single and flexible exchange rate regime for the Adjusted Kwanza, based on a system

of public foreign currency sale using the United States dollar as the intervention currency.

Article 2.

The public sale of foreign currency shall be conducted in dollar lots, and the price to be paid by

winning bidders shall be equal to the price offered by them.

Article 3.

1- The exchange rate obtained in the public foreign currency sale session, equal to the average rate

paid by winning bidders weighted by the amount of foreign currency purchased, shall be

the primary market selling rate and shall serve as the indicative rate for all foreign exchange

operations to be conducted in the secondary market;

2- The secondary market selling exchange rate shall be within a maximum limit of

plus three percent (+ 3%), while the buying rate shall reach a maximum limit of

minus three percent (- 3%).

3- The exchange rate resulting from each public foreign currency sale session shall remain in effect until the

immediately following session.

Article 4.

The exchange rate defined in Article 39 shall govern the purchase and sale of foreign currency by the Bank

of Angola, as well as all merchandise, invisible, and capital operations.

Article 5.

The buying exchange rate by the Bank of Angola shall be one percent (1%) lower

than the primary market selling rate.

Article 6

The public sale of foreign currency shall be conducted biweekly by the Bank of Angola or

whenever the Central Bank's intervention is deemed necessary to stabilize the foreign exchange market.

Article 7.

The general regime of mandatory sale to the Bank of Angola of the foreign currency amount exceeding the captive exchange position limit assigned to each Financial Institution remains in effect.

Article 8.

Foreign currency acquired in the Bank of Angola's public foreign currency sessions shall be

used by purchasers in accordance with the provisions of paragraph 3, letter a) of Dispatch No.

007/95 of the Ministry of Commerce and Tourism of 28 April, and in the Instruction regulating this

Notice.

Article 9.

1- Any private or public company may participate in the public foreign currency sale session,

excluding Financial Institutions and Exchange Houses.

2- Only bids for lots of value equal to or greater than the minimum, announced in the Notice published and advertised by the Bank

of Angola, shall be admitted in the public foreign currency sale sessions.

Article 10.

1- Foreign currency intended for current invisible operations may be sold to commercial banks by the Bank of Angola according to its availability.

2- Current invisible operations shall be conducted in accordance with the provisions of Instruction No.

8/94.

Article 11.

The remaining foreign currency needs in the administrative public sector shall be covered by the Bank of

Angola at the rate fixed in paragraph 1 of Article 3, subject to authorization by the Ministry of Economy and Finance.

Article 12

This Notice enters into force on the date of its publication.

PUBLISH

Luanda, 17 April 1996.

THE GOVERNOR

ANTÓNIO GOMES FURTADO