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Bank of Mozambique Modernises Foreign Exchange Legislation to Stimulate Economic Growth

Bank of Mozambique Modernises Foreign Exchange Legislation to Stimulate Economic Growth

The Bank of Mozambique (BdM) announced on Tuesday, 18 June, in Maputo, a set of new regulations aimed at making foreign exchange operations more flexible, promoting the use of the national currency and increasing the value of the metical.

According to the institution, these changes are aimed at boosting the country’s economy, ensuring greater intervention and clarifying its role as a foreign exchange authority, as reported by O Económico.

During a public session, the BdM emphasised that the new foreign exchange regulations will be implemented through warnings from its governor: “foreign exchange matters are very dynamic and require permanent and timely intervention by the authority to correct any anomalies that could distort the functioning of the market.”

The new rules were established by Law no. 28/2022, of 29 December, and Notices no. 3/GBM/2024, of 20 March, no. 4/GBM/2024, of 21 March, and no. 5/GBM/2024, of 21 March. “These regulations introduce significant innovations, such as the removal of barriers to foreign investment and investments by residents abroad. In addition, the measures aim to facilitate international trade through the gradual liberalisation of the capital account.

The central bank clarified that the limit for Foreign Direct Investment, investment abroad, operations on participation certificates in collective investment organisations and operations on securities and other instruments traded on the over-the-counter capital market in Mozambique has increased from 15.8 million meticais (250,000 dollars) to 63.2 million meticais (1 million dollars) a year. These amounts can be realised without prior authorisation from the Bank of Mozambique,” he said.

For domestic transactions, the BdM establishes the obligation to pay in national currency for all operations within the country, harmonising the special exchange regimes in force, especially in the mining and hydrocarbon sectors.

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