| 1 | USD INDEXED BOND

MATURITY 2019 - 2023

COSTS 1,50%

| 2 | BNI TERM DEPOSITS

6M 12M

100K - 5M

>5M - 50M

>50M - 100M

100M+

AMOUNT 1M 2M 3M

10,90%

11,40%

11,90%

12,40%

11,05%

11,55%

12,05%

12,55%

11,20%

11,70%

12,20%

12,70%

11,35%

11,85%

12,35%

12,85%

11,50%

12,00%

12,50%

13,00%

01 02 CROSS CURRENCY MATRIX

BNI: INVESTMENT OPPORTUNITIES

25th November 2019

Source: XECurrency

0403

Graphic 2 | Source: IEA Source: XECurrency

MARKET ANALYSIS0605

MARKET BULLETIN

BOND MARKET07BT - Treasury Bills

BT - Treasury Bills

BT - Treasury Bills

OTX - Bonds Indexed to USD

OTX - Bonds Indexed to USD

OTX - Bonds Indexed to USD

91 DAYS

182 DAYS

364 DAYS

3 YEARS

4 YEARS

5 YEARS

16,15%

20,25%

23,90%

7,00%

7,50%

7,75%

This month in the Foreign Exchange Policy Committee, the BNA adjusted from 17% to 22% the reserve requirement ratio for national currency in order to reduce excess Kwanzas in the market. This was achieved taking into account the LUIBOR Overnight rate up by almost 10% (Luanda Interbank Offered Rate), which is the average resulting from the interest rates charged by commercial banks on lending and borrowing operations amongst themselves. This means that the cost of funding of banks has increased and consequently will influence an increase in the cost of credit. (Graph # 1)

In less than two weeks, OPEC and its allies must meet to decide on the next phase of their agreement to manage the supply of crude oil and thus its price. They are expected to decide to do nothing for another six months, although their own predictions show the need for deeper cuts to balance the market. This is because growth in US oil production is slowing and "we are likely to see clear revisions to the non-OPEC supply in 2020, mainly from US shale basins," said OPEC Secretary General Mohammad Barkindo at the Abu Dhabi International Oil Exhibition and Conference earlier this month.

In addition, the International Energy Agency expected Chinese oil demand to rise by only 375,000 barrels per day next year (Graph # 2) as growth in demand for car and truck fuel slows. This is the smallest annual increase since the 2008-09 financial crisis. But recently Donald Trump is in a position to enter into trade agreements with China which may reverse the picture, so OPEC may choose at this next meeting to keep the current position awaiting market reaction through these trade negotiations.

With such uncertainty, OPEC + ministers will have little difficulty convincing themselves to extend the current agreement until June and revisit the situation after winter has passed. Another uncertainty to consider is the fact that Iraq has entered the list of OPEC countries whose production levels are at risk of political turmoil or lack of investment (Graph # 3). Almost 90 percent of Iraq's oil exports come from fields in the southern part of the country and could be at risk if unrest spreads. BNI - Direcção Financeira Internacional

CERTIFICAÇÃO INTERNACIONAL DE QUALIDADE

BNI - Banco de Negócios InternacionalAvenida Che-Guevara nº 42 - A, Bairro Maculusso, Distrito da Ingombota. Caixa Postal 578. Luanda - AngolaTel: (+244) 222 632 900 / (+244) 222 632 901 / Fax: (+244) 222 371 887

www.bni.ao

PASSION FOR ANGOLA.To realise, develop and participate in Angola’s growth.This is where we apply our passion. To always do better.

Graphic 1 | Source: BNA

Graphic 3 | Source: Bloomberg

CHINESE OIL DEMAND

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OPEC COUNTRIES WHOSE PRODUCTION LEVELS ARE AT RISK FROM POLITICAL TURMOIL, OR LACK OF INVESTMENT

31-J

an-1

9

28-F

eb-1

9

29-M

ar-1

9

30-A

br-1

9

31-m

ai-19

28-J

un-19

31-J

ul-19

30-A

go-1

9

30-S

et-1

9

31-O

ut-19

25-N

ov-19

30,00%

25,00%

20,00%

15,00%

10,00%

5,00%

0,00%

LUANDA INTERBANK OFFERED RATE (O/N)LUIBOR (O/N)

2005 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2020

1.00

0.75

0.50

0.25

0.20

5

4

3

2

1

0

Iraq Iran Nigeria Angola Libya Algeria Venezuela

AOA

USD

GBP

EUR

ZAR

1 00000,

0,00213

0,00165

0,00193

0,03126

470,000

1,00000

0,77693

0,90666

14,6918

604,947

1,28712

1 00000,

1,16698

18,9101

518,387

1,10295

0,85691

1,00000

16,2043

31,9906

0,06807

0,05288

0,06171

1,00000

1 AOA 1 USD 1 GBP 1 EUR 1 ZAR