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2021-02-12

Circular No. 02/EFI/2021, of 12 February – Scope of the Obligation to Convert 30% of Export or Foreign Investment Revenues into National Currency

The Bank of Mozambique issued Circular No. 02/EFI/2021 to clarify the scope of the mandatory 30% foreign exchange conversion rule for resident entities receiving export or foreign investment revenues. The circular explicitly exempts rental income from non-residents using resident-owned national real estate and salary payments to residents working for diplomatic missions from this conversion requirement, allowing these funds to remain entirely in foreign currency. Banks are instructed to apply these parameters immediately, with the circular taking effect on 16 February 2021, and any interpretive questions must be directed to the Licensing and Exchange Control Department.

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Mozambique

Banco de Mocambique

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Bank of Mozambique

Administration

FINANCIAL STABILITY DEPARTMENT

CIRCULAR NO. 02/EFI/2021

Maputo, 12 February 2021

SUBJECT: SCOPE OF THE OBLIGATION TO CONVERT 30% OF EXPORT OR FOREIGN INVESTMENT REVENUES INTO NATIONAL CURRENCY

In order to establish the precise terms regarding the meaning and scope of the provisions set forth in Notice No. 6/GBM/2020, of 10 June, specifically concerning the scope of the obligation to convert into national currency 30% of export revenues from goods and services and foreign investment revenues by resident entities, the Bank of Mozambique clarifies as follows:

  1. Taking into account their specificities, the following are not subject to the obligation to convert into national currency 30% (thirty percent) of the received amount, and shall be maintained entirely in foreign currency in the beneficiary's account:

    a) revenues resulting from rent payments by non-resident entities for the use of real estate owned by residents located within national territory, when such payment is made to accounts domiciled in the National Banking System; and

    b) revenues related to the payment of remuneration in the form of salaries for services provided by residents to embassies and other diplomatic and consular representations established in Mozambique.

  2. In their operations, banks must act in accordance with the scope parameters described in the preceding paragraph.

  3. This Circular enters into force on 16 February 2021.

Any doubts arising from the interpretation and application of this Circular must be submitted to the Licensing and Exchange Control Department.

BANK OF MOZAMBIQUE
Financial Stability Department
Jamal Omar
Administrator

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