Notice No. 6/93 of the Bank of Portugal

Notices of the Bank of Portugal Notice No. 6/93

The Bank of Portugal, in accordance with the guidelines defined above, using the competence attributed to it by arts. 22 and 32 of its Organic Law and by paragraph 1 of art. 10 of Decree-Law 13/90 of January 8, determines the following:

1 - The purchase and sale of foreign currency referred to in paragraph 1 of art. 5 of Decree-Law 13/90 of January 8, comprises the following operations:

1.1 - Spot purchase and sale of foreign currency against escudos or of foreign currency against foreign currency; 1.2 - Forward purchase and sale of foreign currency against escudos or of foreign currency against foreign currency; 1.3 - The contracting of currency swaps; 1.4 - The purchase and sale of exchange options; 1.5 - The purchase and sale of exchange futures; 1.6 - Purchase and sale of foreign banknotes or metallic coins and travel checks.

2 - Entities authorized to conduct exchange business may freely negotiate with clients or among themselves the exchange rates and commissions to be applied in the operations referred to in the previous paragraph.

3 - The Bank of Portugal shall establish and publish daily, for informational purposes, spot exchange rates against escudos, for a limited set of currencies or accounting units, which will reflect the quotations practiced in the market. These quotations are called official exchange rates.

4 - The composition of the set of officially quoted currencies is determined by the Bank of Portugal, taking into account the size of their respective markets, their importance in the country's external transactions, their convertibility, and other aspects that may be considered relevant for this purpose.

5 - Entities conducting exchange business must display in a visible manner, at all counters, updated information regarding the exchange rates practiced by these institutions, as well as commissions or other charges applicable to exchange operations.

6 - Entities conducting exchange business must provide the Bank of Portugal, in accordance with instructions transmitted to them by the Bank, informative elements regarding the exchange operations carried out.

7 - The provisions of paragraph 6 of this notice shall take effect on January 1, 1993.

October 1, 1993. - The Minister of Finance, Jorge Braga de Macedo.