The Bank of Mozambique has recently unveiled a set of measures designed to facilitate foreign investment and optimise the investments of residents abroad, including international trade. These changes involve the gradual liberalisation of the capital account and raise the annual limit for transactions without prior authorisation from 250,000 dollars to one million dollars.
In Maputo, the Central Bank explained that the new foreign exchange guidelines aim to remove barriers, promoting greater flexibility in currency operations. This initiative is part of an effort to improve the business environment in Mozambique and attract more external capital.
The new rules apply to Foreign Direct Investment, Investment Abroad, operations on units in collective investment undertakings, and over-the-counter transactions in securities and other financial instruments. The obligation to make payments in national currency for all domestic transactions has also been reinforced.
In addition, the existing special foreign exchange regimes have been harmonised, especially in mining and hydrocarbons projects, ensuring that pre-existing commitments are maintained.
These changes to the Foreign Exchange Law and associated regulations aim to speed up foreign exchange operations, ensure a greater inflow of external capital and availability of foreign currency, promote the appreciation of the national currency and secure a more stable and robust foreign exchange market.
With these measures, the Bank of Mozambique intends to legitimise and clarify its role as the foreign exchange authority, ensuring efficient and timely regulation to correct any anomalies that may arise in the market.
