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The Bank of Mozambique has announced the removal of barriers to foreign investment and investments by residents abroad, and to international trade, increasing to USD 1 million (€932,000) the annual limit to automatic route.
The Bank of Mozambique has announced the removal of barriers to foreign investment and investments by residents abroad, and to international trade, increasing to USD 1 million (€932,000) the annual limit to automatic route. The central bank explained that the changes result from new exchange rate regulations already in force, to remove barriers to foreign investment in Mozambique and investments by residents abroad, as well as facilitating international trade.
The Bank of Mozambique explained that the amounts that can be carried out without prior authorization from the Bank of Mozambique increased from the previous 250,000 dollars to one million dollars annually. These operations include Foreign Direct Investment, Investment abroad, operations on certificates of participation in collective investment organizations, and operations on securities and other instruments traded in the capital market outside the stock exchange in Mozambique.
The objective, according to the Bank of Mozambique, is to achieve greater speed in carrying out foreign exchange operations, guarantee greater inflow of external capital and greater availability of foreign exchange, in addition to promoting the “valuation of the national currency” and a stable, dynamic and robust foreign exchange market.
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With the new regulations, the central bank can legitimize the intervention and role of the Bank of Mozambique”, as exchange rate authority, to attribute clear powers in exchange rate matters and guarantee timely exchange rate regulation, which is now to be carried out “through notices from the governor, given “that exchange rate matters are quite dynamic and require permanent and timely intervention from the authority to be able to correct any anomalous situation that could distort the functioning of the market.
