Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

ANGOLA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of December 31, 2004)

Status Under IMF Articles of Agreement
Article XIVYes.
Exchange Arrangement
CurrencyThe currency of Angola is the Angolan kwanza.
Exchange rate structureUnitary.
Classification
Managed floating with no predetermined path for the exchange rateThe exchange rate of the kwanza is market determined. However, the Banco Nacional de Angola (BNA) intervenes actively in the foreign exchange market, allowing only modest depreciations and appreciations of the official exchange rate. The BNA publishes a reference rate daily, which is computed as the transaction-weighted average of the day’s rates.
Authorized foreign exchange dealers (i.e., banks and exchange bureaus) may deal among themselves and with their customers at freely negotiated rates.
Exchange taxForeign exchange operations are subject to a stamp duty of 0.15%. Transactions between banking institutions or involving banknotes and traveler’s checks are exempt from this duty.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsTransactions with other countries may be made through bank transfers, LCs, or financing and banking agreements.
Use of foreign exchange among residentsYes.
Payments arrangements
Bilateral payments arrangements
OperativeAgreements with Brazil, China, and Israel are in effect.
InoperativeThere is an agreement with Spain.
Administration of controlThe BNA is the exchange authority and may delegate its powers to other entities that are authorized to engage in foreign exchange activities. All capital transactions and invisible operations exceeding $5,000 or its equivalent are subject to prior BNA authorization. The BNA has authorized commercial banks to carry out certain transactions in the foreign exchange market. Foreign exchange bureaus that are licensed to conduct foreign exchange transactions may deal only in banknotes and traveler’s checks, and execute current invisible operations of a private nature.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Yes.
In accordance with UN sanctionsYes.
Payments arrears
OfficialYes.
PrivateYes.
Controls on trade in gold (coins and/or bullion)
Controls on domestic ownership and/or tradeResidents are permitted to hold and trade gold only in the form of jewelry.
Controls on external tradeImports and exports of gold in coin and bullion form are subject to BNA monopoly.
Controls on exports and imports of banknotes
On exports
Domestic currencyExports of domestic currency are prohibited.
Foreign currencyResidents may take out up to the equivalent of $10,000 in foreign exchange. Amounts exceeding this limit require exchange purchase documents, including statements regarding the reason for the purchase. Nonresidents may take out up to $5,000; amounts exceeding this limit may be taken out only if previously declared upon arrival in the country. Exports of banknotes and traveler’s checks by banking institutions require prior authorization from the governor of the BNA.
On imports
Domestic currencyImports of domestic currency are prohibited.
Foreign currencyResidents may bring in up to the equivalent of $10,000 in foreign currency or traveler’s checks. Amounts in excess of this limit may be brought in with proof of the legal nature of the funds. For nonresidents, amounts in excess of $5,000 must be declared upon arrival. Banking institutions are free to import banknotes and traveler’s checks, but they must submit a monthly report to the BNA.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyThese accounts may be credited with foreign currency or any other instruments accepted internationally and accrued interest. These accounts may be debited with the withdrawal or sale of foreign exchange to settle imports of goods and services or capital transactions, as allowed by law. Transfers between these accounts are permitted, but overdrafts are not. Checkbooks may not be issued against accounts of juridical persons.
Held abroadFor natural persons, no approval is required for holding these accounts. With BNA approval, juridical persons are allowed to open foreign exchange accounts abroad that may be credited with their export receipts and may be debited for payments for imports of goods and services and debt-service payments. With BNA authorization, diamond and other mineral companies are allowed to retain escrow accounts in banks abroad as a guarantee against foreign borrowing.
Accounts in domestic currency held abroadNo.
Accounts in domestic currency convertible into foreign currencyNo.
Nonresident Accounts
Foreign exchange accounts permittedThese accounts may be credited with foreign currency imported from abroad, with the accrued interest, or with sums from nonresidents’ type A domestic currency accounts. They may be debited for the withdrawal or sale of foreign currency, payments for foreign currency expenditures, or the repatriation of amounts authorized by the BNA.
Domestic currency accountsNonresidents may open two types of domestic currency accounts: type A and type B. Type A accounts may be credited with the proceeds from sales of funds from foreign exchange accounts and, after obtaining prior BNA authorization, with receipts from the nonresident’s activities in Angola. These accounts may be debited for payments of local expenses and against purchases of foreign currency to be deposited in a foreign currency account held by the same entity.
Type B accounts may only be credited with receipts from the nonresident’s activity in the country (when authorized by the BNA), and may be debited for payment of local expenses.
Convertible into foreign currencyNo.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for imports
Preshipment inspectionPreshipment inspection is required in the following cases: imports by government institutions and public companies, as well as any other merchandise selected by the customs administration. In particular, preshipment inspection is required for imports of boats, buses, mechanical accessories, new and used cars, motorcycles, receivers and transistors, broadcasting equipment, telecommunications devices, telex equipment, televisions, trucks, and scrap metal. Imports by juridical and natural persons of goods valued at more than the equivalent of $5,000 and $10,000, respectively, also require preshipment inspection. Imports of goods of lesser value are subject to inspection if the frequency is more than once every quarter. Imports of goods valued between $1,000 and $10,000 must be registered with the Preshipment Inspection Company for statistical and control purposes.
Import licenses and other nontariff measures
Negative listRestrictions apply to imports of currency, toxic products, and certain drugs. Imports of arms and ammunition for personal use are subject to authorization by the Ministry of the Interior.
Open general licensesImports are not subject to licenses, but must be registered under the REM (entry merchandise registration) system for statistical purposes.
Import taxes and/or tariffsThe tariff system consists of eight rates: 1%, 2%, 5%, 10%, 20%, 25%, 30%, and 35%.
Taxes collected through the exchange systemThe stamp tax is collected through the exchange system.
State import monopolyOil products and derivatives may be imported only by the public oil company. Arms and ammunition for warfare may be imported only by the state.
Exports and Export Proceeds
Repatriation requirementsYes.
Surrender requirementsDomestic oil companies must surrender all their export proceeds to the BNA. Foreign oil companies are allowed, with BNA authorization, to retain their export receipts abroad for payment of imports of goods and services, interest and profits transfer, and the amortization of capital. These companies must use funds from abroad for payment of royalties, taxes, and local expenses. Foreign exchange earnings by the non-oil sector must be surrendered to domestic banks. Diamond companies are allowed to retain in local banks the receipts from exports for payment for imports of goods and services. They may also retain part of their receipts abroad in escrow accounts, with BNA authorization, as a guarantee against foreign borrowing.
Financing requirementsNo.
Documentation requirements
Letters of creditYes.
GuaranteesYes.
DomiciliationYes.
Preshipment inspectionYes.
Export licenses
Without quotasExports are not subject to licenses, but must be registered under the RSM (exit merchandise registration) for statistical purposes. Reexports of goods other than personal belongings are prohibited. Exports of arms, ammunition, and cultural artifacts are prohibited. Special export regimes apply to aircraft, animals and animal products, historical objects, and petroleum.
Export taxesExport taxes consist of six rates: 1%, 2%, 3%, 4%, 5%, and 10%.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersBanks and exchange houses are authorized to sell to residents up to $5,000 or its equivalent for invisible transactions.
Trade-related paymentsService contracts with nonresidents in excess of $5,000 or its equivalent are subject to licensing.
Prior approvalYes.
Investment-related payments
Prior approvalForeign investors are authorized by the BNA to remit profits and dividends, after payment of taxes and fulfillment of other legal requirements.
Payments for travel
Quantitative limitsResidents may freely purchase foreign exchange from financial institutions and exchange bureaus up to the equivalent of $5,000. Residents may, upon presentation of a passport and an airline ticket, purchase foreign exchange from financial institutions as follows: for personal travel, the equivalent of $10,000 a person a trip; for business travel, a maximum of $500 a day for up to 30 days; for educational, scientific, or cultural purposes, $2,000 a person a month (limited to residents who are temporarily abroad); and for medical treatment, a maximum of $10,000.
Personal payments
Prior approvalYes.
Quantitative limitsUp to the equivalent of $2,000 a month may be authorized to Angolans or foreigners residing abroad who are direct descendants of and financially dependent on residents of Angola or are incapable of working.
Foreign workers’ wages
Prior approvalYes.
Credit card use abroadOnly banks may issue credit cards.
Quantitative limitsUse of credit cards abroad is limited to the equivalent of $10,000.
Other payments
Prior approvalYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Surrender requirementsService earnings must be surrendered to a bank, unless the provider is authorized by the BNA to retain a certain proportion of the proceeds.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsAll capital transactions must be conducted through authorized banks and require BNA approval and licensing. Banks may perform private capital transactions, such as those that involve donations or remittances from abroad, without BNA approval.
Controls on capital and money market instrumentsControls apply to all transactions in capital and money market instruments.
Controls on derivatives and other instrumentsn.r.
Controls on credit operations
Commercial creditsOperations are subject to licensing for statistical purposes only.
By residents to nonresidentsSuppliers’ credits must be reported to the BNA.
To residents from nonresidentsSuppliers’ credits must be reported to the BNA.
Financial creditsFinancial credits are subject to licensing from the BNA.
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Guarantees, sureties, and financial backup facilities
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Controls on direct investment
Outward direct investmentAngolan citizens are permitted to invest abroad, in accordance with the Exchange Law.
Inward direct investmentForeign investments are subject to the provisions of the Private Investment Law (2003) as well as foreign exchange laws and regulations, which are implemented by the Private Investment National Agency. Special laws regulate investment in certain areas, including (1) oil and mineral exploration and (2) financial institutions. Foreign investment is prohibited in the following areas: (1) defense, internal public order, and state security; (2) central banking and currency issue; and (3) other areas reserved for the state.
Controls on liquidation of direct investmentForeign investors are guaranteed the right to transfer abroad the proceeds of the sale of investments, including gains and amounts owed to them after payment of taxes due.
Controls on real estate transactionsControls apply to all real estate transactions.
Controls on personal capital transactionsControls apply to all personal capital transactions.
Provisions specific to commercial banks and other credit institutions
Borrowing abroadYes.
Maintenance of accounts abroadYes.
Lending to nonresidents (financial or commercial credits)Yes.
Lending locally in foreign exchangeBanks may lend locally in foreign exchange to resident exporters.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsEffective March 22, 2004, the reserve requirement for demand deposits in both local and foreign currencies is 10% (previously 15%). Effective November 23, 2004, the reserve requirement for local currency demand and time deposits is raised to 15%. The reserve requirement coefficient is calculated weekly, based on the average deposits held in the previous week. Also effective November 23, 2004, up to 20% (previously, 5%) of the reserve requirement base may be held in treasury bonds of the BNA or in treasury bills with maturities of 91 days or longer. The coefficient of the reserve requirement for central government deposits in local and foreign currencies is 100%.
Liquid asset requirementsThe liquid asset requirement is 50% of the foreign exchange portfolio.
Investment regulations
Abroad by banksYes.
In banks by nonresidentsYes.
Open foreign exchange position limitsBanks may hold daily foreign exchange positions of up to 20% of their own funds. Foreign exchange bureaus may hold daily foreign exchange positions of up to 10 times their social capital.
On resident assets and liabilitiesYes.
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investorsn.r.
Other controls imposed by securities lawsn.r.
Changes During 2004
Capital transactions
Provisions specific to commercial banks and other credit institutionsMarch 22. The reserve requirement for demand deposits in both local and foreign currencies was reduced to 10% from 15%.
November 23. The reserve requirement for demand and time deposits in local currency was raised to 15% from 10%. The proportion of reserve requirement that may be held in treasury bonds of the BNA and treasury bills with maturities of 91 days or longer was raised to 20% from 5%.

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