FX Regulation in Angola
Angola’s foreign exchange regime is governed by the Banco Nacional de Angola (BNA) through a series of Avisos (notices) and Instrutivos (instructions). As an oil-dependent economy with reserves of $15.3 billion and a managed exchange rate of USD/AOA 914.60, FX regulation is central to Angola’s macroeconomic management and directly affects all capital markets participants.
Exchange Rate Regime
The BNA operates a managed float system with periodic FX auctions. The reference rate is set through the interbank foreign exchange market (MCIE), supplemented by BNA interventions. Key features include:
- BNA FX Auctions: Regular auctions where commercial banks bid for USD allocations
- Interbank Market: Licensed banks may trade FX among themselves at market-determined rates
- Crawling Band: The BNA manages a gradual adjustment mechanism to balance external competitiveness with inflation control
Key FX Regulations
| Aviso/Instrutivo | Subject | Key Provisions |
|---|---|---|
| Aviso 13/19 | FX Market Operations | Rules for interbank FX trading and BNA auction participation |
| Aviso 15/19 | Non-Resident Investment | Enables diaspora and foreign investors to invest in Angolan securities |
| Aviso 17/19 | Export Revenue Repatriation | Mandatory repatriation of export proceeds within 90 days |
| Aviso 20/19 | Import FX Access | Procedures for importers to access FX through commercial banks |
Capital Account Controls
Angola maintains capital account restrictions, though these have been progressively liberalized:
- Inward investment: Foreign direct investment is permitted under the Private Investment Law (LPPI). Registration with the BNA is required for capital repatriation rights.
- Outward investment: Residents face restrictions on transferring capital abroad. BNA prior authorization is required for amounts above defined thresholds.
- Profit repatriation: Dividends and investment returns may be repatriated by registered foreign investors through their designated investment accounts, subject to tax clearance.
Repatriation Rules
Non-resident investors operating under Aviso 15/19 may repatriate:
- Dividends and interest income
- Capital gains from the sale of securities
- Loan repayments and related interest
All repatriation requests must be processed through a licensed commercial bank and supported by documentation confirming the original investment, tax payment, and regulatory compliance.
FX Risk for Investors
With the Kwanza at 914.60 per USD and inflation at 15.7%, FX risk is a significant consideration for both domestic and international investors. Key factors include:
- Oil price sensitivity: As oil (Brent ~$74.50/bbl) accounts for the majority of export revenue, oil price movements directly affect FX reserves and the exchange rate
- BNA intervention capacity: The $15.3 billion reserve buffer provides limited coverage (approximately 8-9 months of imports)
- Parallel market spreads: The gap between official and parallel market rates serves as an indicator of FX pressure
For the latest BNA policy rate decisions and their FX implications, see BNA policy. For diaspora-specific FX guidance, see the FX guide.