Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

ANGOLA

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of December 31, 2006)

Status under IMF Articles of Agreement
Article XIVYes.
Exchange Measures
Restrictions and/or multiple currency practicesInformation is not publicly available.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Yes.
Other security restrictionsYes.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Angola is the Angolan kwanza.
Exchange rate structureUnitary.
Classification
Conventional pegged arrangementThe exchange rate of the kwanza is market-determined. However, the Banco Nacional de Angola (BNA) intervenes actively in the foreign exchange market, to sterilize foreign currency inflows in the form of taxes paid by oil companies. Effective June 1, 2005, reflecting the stability of the kwanza exchange rate owing to BNA interventions, the de facto exchange rate arrangement of Angola was reclassified to a conventional pegged arrangement from managed floating with no predetermined path for the exchange rate. The BNA publishes a reference rate daily, which is computed as the transaction-weighted average of the day’s rates negotiated with commercial banks. ADs (banks and exchange bureaus) are authorized to deal in foreign exchange 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.
References to legal instruments and hyperlinksn.a.
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.
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 current invisible operations exceeding $500,000 are subject to prior BNA authorization. The BNA has authorized banks and foreign exchange bureaus 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.
Payments arrears
OfficialYes.
Controls on trade in gold (coins and/or bullion)
On domestic ownership and/or tradeResidents are permitted to hold and trade gold only in the form of jewelry.
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 currencyEffective January 10, 2006, residents may take out up to the equivalent of $15,000 (previously, $10,000) in foreign currency. Amounts exceeding this limit require proof of purchase from a bank, including clear statements regarding the reason for the purchase pursuant to the legislation in force. Nonresidents may take out up to $15,000 (previously, $5,000) in foreign currency; amounts exceeding this limit may be taken out up to the declared amount on submission of a copy of the customs declaration completed on arrival.
On imports
Domestic currencyImports of domestic currency are effected only by the BNA.
Foreign currencyEffective January 10, 2006, residents may bring in up to the equivalent of $15,000 (previously, $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 $15,000 (previously, $5,000) must be declared to customs on arrival. Banking institutions are free to import banknotes and traveler’s checks, but they must submit a monthly report to the BNA.
References to legal instruments and hyperlinksNotice 1/06 of January 10, 2006.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyThese accounts may be opened by resident individuals and legal 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.
Approval requiredYes.
Accounts in domestic currency held abroadNo.
Accounts in domestic currency convertible into foreign currencyNo.
References to legal instruments and hyperlinksn.a.
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 be credited only 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.
References to legal instruments and hyperlinksn.a.
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: (1) imports by government institutions and public companies, as well as any other merchandise selected by the National Directorate of Customs for preshipment inspection; (2) imports of new and used cars; light-duty, cargo, and passenger vehicles; yachts and other leisure or sports boats and vessels; any other motorized vehicle as well as their parts and accessories; scrap metal; and receivers and transistors for radiotelephone and radio or television broadcasting; and (3) imports by juridical and natural persons of goods valued at more than the equivalent of $5,000 and $10,000, respectively. Imports of goods valued between $1,000 and $10,000 must be registered with the preshipment inspection company for statistical purposes. Goods valued at less than $5,000 and $10,000 that do not require preshipment inspection may be imported only once every quarter.
Import licenses and other nontariff measures
Negative listThe legal framework lists the goods that may not be imported, which include plants and animals from infected areas, toxic products, and certain drugs. There is a list of goods that require specific licenses from either the Ministry of Health, Industry, or Agriculture. Imports of arms and ammunition are subject to authorization by the Ministry of the Interior. Imports for specific purposes may be exempted from customs tariffs.
Open general licensesImports must be registered under the REM (entry merchandise registration) system for statistical purposes.
Other nontariff measuresn.r.
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 0.15% 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.
References to legal instruments and hyperlinksDecreto-Lei No. 2/05.
Exports and Export Proceeds
Repatriation requirementsForeign oil companies are allowed 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.
Surrender requirements
Surrender to the central bankYes.
Surrender to authorized dealersForeign exchange earnings from exports of goods and services 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 licensesExports 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, works of art, and petroleum.
Export taxesExport taxes consist of six rates: 1%, 2%, 3%, 4%, 5%, and 10%.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfers
Trade-related paymentsService contracts with nonresidents in excess of $500,000 or its equivalent are subject to licensing.
Prior approvalYes.
Indicative limits/bona fide testn.r.
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.
Indicative limits/bona fide testn.r.
Payments for travel
Quantitative limitsThe noncumulative monthly limit on outward transfers, a person a trip, for personal travel or for business, health, educational, scientific, or cultural purposes, in accordance with the subcategories that include private transactions, is set at $15,000 or its equivalent in other currency, up to a maximum of $60,000 over a 12-month period. Submission of proof of boarding, or of a passport with an entry visa in the country of destination, and the travel ticket is required.
Personal payments
Prior approvalYes.
Quantitative limitsOutward transfers are allowed up to $15,000 a month or its equivalent in other currency, a person, up to a maximum of $60,000 over a 12-month period, for expenses on maintenance of Angolans or foreigners residing abroad who are direct ascendants or descendants in the first degree of residents of Angola, with the submission of a certificate of residency and of documents proving the family relationship. Submission of proof of boarding, or of a passport with an entry visa in the country of destination, and the travel ticket is required.
Foreign workers’ wages
Prior approvalYes.
Quantitative limitsn.r.
Indicative limits/bona fide testn.r.
Credit card use abroadOnly banks may issue credit cards.
Quantitative limitsUse of credit cards abroad is limited to the equivalent of $10,000.
Indicative limits/bona fide testn.r.
Other paymentsn.r.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Surrender requirements
Surrender to authorized dealersService earnings must be surrendered to a bank, unless the depositor is authorized by the BNA to retain a certain proportion of the proceeds.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsAll capital transactions are subject to BNA licensing. Capital transactions must be conducted through banks and require BNA approval and issuing of a capital import or export license.
Repatriation requirementsn.a.
Surrender requirementsn.a.
Controls on capital and money market instrumentsControls apply to all these transactions.
Controls on derivatives and other instrumentsn.r.
Controls on credit operations
Commercial creditsOperations are subject to prior licensing by the BNA for registration purposes only.
By residents to nonresidentsSuppliers’ credits must be reported to the BNA for statistical purposes.
To residents from nonresidentsSuppliers’ credits must be reported to the BNA for statistical purposes.
Financial creditsFinancial credits are subject to licensing from the BNA.
Guarantees, sureties, and financial backup facilitiesControls apply to all these transactions.
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 as well as foreign exchange laws and regulations, which are implemented by the National Agency for Private Investment. 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, domestic 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 transactions
Sale locally by nonresidentsYes.
Controls on personal capital transactions
LoansControls apply to all these transactions.
Gifts, endowments, inheritances, and legaciesControls apply to all these transactions.
Transfer of gambling and prize earningsYes.
References to legal instruments and hyperlinksPrivate Investment Law (2003); BNA Instruction 01/2003 of February 7, 2003.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Borrowing abroadYes.
Maintenance of accounts abroadYes.
Lending locally in foreign exchangeBanks may lend locally in foreign exchange.
Purchase of locally issued securities denominated in foreign exchangeYes.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsThe reserve requirement for demand deposits in foreign and domestic currencies is 15%. The reserve requirement coefficient is calculated weekly, based on the average deposits held in the previous week. All required reserves must be settled in domestic currency. Up to 50% of the reserve requirement base may be held in direct public debt securities (treasury bonds and bills) with maturities of 65 days or longer. The coefficient of the reserve requirement for central government deposits in local currency is 100% and for local government deposits, 50%.
Liquid asset requirementsThe liquid asset requirement is 50% of the foreign exchange portfolio.
Differential treatment of deposit accounts held by nonresidents
Credit controlsn.r.
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 active foreign exchange positions of up to 10 times their capital.
Provisions specific to institutional investors
Insurance companiesn.r.
Pension fundsn.a.
Investment firms and collective investment funds
Limits (max.) on securities issued by nonresidentsn.a.
Limits (max.) on investment portfolio held abroadn.a.
Limits (min.) on investment portfolio held locallyn.a.
Currency-matching regulations on assets/liabilities compositionn.a.
References to legal instruments and hyperlinksBNA Notice 06/2003 of February 7, 2003; BNA Notice 15/2003 of October 17, 2003.
Changes during 2006
Exchange arrangementAugust 1. Effective June 1, 2005, the exchange rate arrangement of Angola was reclassified to the category conventional pegged arrangement from the category managed floating with no predetermined path for the exchange rate.
Arrangements for payments and receiptsJanuary 10. The limits for exports and imports of foreign currency banknotes were increased to $15,000, from $10,000 for residents and $5,000 for nonresidents.

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