Angola: Forward foreign exchange transactions

By way of Order 13/23, of 14 December 2023, the Angolan Central Bank (BNA) has issued regulations on forward foreign exchange transactions to take place between banks and their clients. Below is an outline of the new rules:

1- A forward foreign exchange transaction is defined as a transaction between a bank and a client providing for the purchase/sale of an agreed amount in Angolan currency (Kwanza) at a set date in the future in exchange for the sale/purchase of an agreed amount in a foreign currency at an exchange rate agreed at present.

2- Banks can only enter into forward forex transactions with the following clients:

• Importers;
• Exporters;
• Oil companies;
• Diamond companies;
• State entities.

On an exceptional basis, banks may enter into private forward forex transactions with their individual clients.

3- The forward forex transaction must be exclusively aimed at covering/hedging the foreign exchange risk associated with specific import or export operation.

4- Forward forex transactions may involve the Angolan currency – Kwanza – and any freely convertible foreign currency.

5- The maximum term of a forward forex transaction is 1 year for corporate clients and 6 months for individual clients.

6- The general clauses of forward forex contracts must follow the template contained in Appendix I to Order 13/23.

7- The particular clauses of forward forex contracts must contain the minimum information described in Order II to Order 13/23.

8- All transactions in excess of USD 50.000 must be registered in the Bloomberg FXGO platform. In any event, banks must ensure that all forward forex transactions are duly registered in their systems.

9- The bank may request that the client provides a guarantee to secure a forward forex transaction.

10- The client must have funds available in its account to settle the transaction at least 2 business days prior to the settlement date.

11- The bank must inform the client, on a monthly basis, of all pending forward forex transactions with a description of the main terms of each transaction.

The previous BNA Order 22/20, of 27 November 2020, was repealed and replaced with BNA Order 13/23.

Rui Amendoeira, OneLegal Partner