242017Aug
Mozambique introduces an exchange reference rate regulation and method of calculation

Mozambique introduces an exchange reference rate regulation and method of calculation

Notice 4 / GBM / 2017 of April 20, 2017 is aimed at promoting greater transparency in the market, and more specifically, the process of setting exchange rates;  introducing into the Mozambican market an exchange reference rate regulation and method to be used to calculate same.

Such regulation applies to banks and bureaux de change and governs the purchase and sale of foreign currency between banks and bureau de change (on the one hand) and the public (on the other) as well as exchange transactions between banks and between banks and the Bank of Mozambique, i.e., the Foreign Exchange Interbank Market.

Accordingly, this regulation sets the market exchange reference rate as the average exchange rate of the transactions between the bank and the public, calculated in accordance with the terms laid down in the decree.

In order to comply with the duty to inform the Bank of Mozambique, banks must register daily through the MeticalNet application their exchange rates for the purchase and sale of USD to the public.  Banks must also send to the Bank of Mozambique through the MeticalNet application, the USD / MZN exchange rates to be applied in transactions with the public.  In cases where there are no updates, the Bank of Mozambique will take into account the last exchange rate available.

The calculated exchange rates will be made available by the Bank of Mozambique on its website, through email, telefax and other means, and this exchange rate should be made available by the institutions covered by this Regulation in a visible place easily accessible to the public.

 Erna Guetsa is a lawyer at CGA, LEX Africa member for Mozambique

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