First Capital Bank has informed its clients that, between November 1 and 30, 2025, the applicable rate for the Market Risk Premium (PRM) will be 16%.
According to an official statement, the measure came into effect on Friday, October 31, and applies to all operations subject to this index, within the framework of the bank’s foreign exchange and financial risk management practices.
The statement also notes that clients seeking further information may visit the nearest branch or contact their account manager directly. The PRM rate is revised and updated periodically, reflecting risk parameters associated with macroeconomic conditions and regulatory requirements in Mozambique’s financial sector.
The PRM rate update by First Capital Bank comes at a time when the Mozambican financial system is closely monitoring adjustments in the reference interest rate. At the end of October, the Mozambican Association of Banks announced a reduction of the rate to 16%, reflecting expectations of inflation stability. Although the prime rate remains at 16.5%, commercial banks have been gradually adjusting their financial products in response to Bank of Mozambique guidelines and current macroeconomic conditions.
What is the PRM Rate?
The PRM (Market Risk Premium) is an index applied by banks to certain financial operations, particularly those related to foreign exchange hedging, external trade credit, or instruments with higher market risk exposure.
This rate serves to compensate financial institutions for the additional risks associated with currency fluctuations, economic instability, or uncertainty in international markets. It is reviewed periodically and added to the final cost of operations, influencing the total charge borne by clients in specific transactions.
Source: Diário Económico
