Notice No. 7/GBM/2020 of October 21 – Regulation on the Reference Exchange Rate of the Foreign Exchange Market and Revocation of Notice No. 4/GBM/2017 of April 20

BOLETIM DA REPÚBLICA PUBLIC OFFICIAL GAZETTE OF THE REPUBLIC OF MOZAMBIQUE SUMMARY NOTICE The matter to be published in the "Boletim da República" must be submitted as a duly authenticated copy, one for each subject matter, containing, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the "Boletim da República". IMPRENSA NACIONAL DE MOÇAMBIQUE, E. P. Bank of Mozambique: Notice No. 7/GBM/2020: Approves the Regulation on the Reference Exchange Rate of the Foreign Exchange Market and revokes Notice No. 4/GBM/2017 of April 20. Wednesday, October 21, 2020 SERIES I — Number 201 BANK OF MOZAMBIQUE Notice No. 7/GBM/2020 of October 21 The current dynamics of the foreign exchange market require adjustments to the mechanisms adopted by their respective participants, with a view to making the reference exchange rate increasingly transparent. In these terms, the Bank of Mozambique, as director and supervisor of the foreign exchange market, in exercise of the powers conferred upon it by items a) and c) of Article 30 of Law No. 1/92 of January 3 - Organic Law of the Bank of Mozambique - combined with Article 54 of Law No. 15/99 of November 1, amended by Law No. 9/2004 of July 21, determines:

1. The Regulation on the Reference Exchange Rate of the Foreign Exchange Market is approved, attached to this Notice and forming an integral part thereof.
2. Notice No. 4/GBM/2017 of April 20 is revoked, along with all provisions contrary thereto.
3. This Notice enters into force on the date of its publication. Any doubts arising from the interpretation and application of this Notice must be submitted to the Markets and Reserve Management Department of the Bank of Mozambique. Maputo, September 24, 2020. – The Governor of the Bank of Mozambique, Rogério Lucas Zandamela. Regulation on the Reference Exchange Rate of the Foreign Exchange Market ARTICLE 1 Subject Matter This Regulation establishes the reference exchange rate of the foreign exchange market and the methodology for its calculation. ARTICLE 2 Scope of Application This Regulation applies to banks and foreign exchange bureaus. ARTICLE 3 Definitions For the purposes of this Regulation, the following shall be understood: a) Foreign exchange market – segment for the purchase and sale of foreign currency between banks and the public, between foreign exchange bureaus and the public, as well as the Interbank Foreign Exchange Market; b) IFEM – Interbank Foreign Exchange Market; c) MZN – Metical; d) USD – United States Dollar. ARTICLE 4 Reference Exchange Rate
4. The reference exchange rate of the foreign exchange market is the simple average of the weighted average purchase and sale exchange rates for transactions between banks and the public.
5. The weighting referred to in the preceding paragraph is carried out using banks' shares in the foreign exchange market for the immediately preceding month, as published by the Bank of Mozambique.
6. The average reference exchange rate for the USD/MZN parity is determined at the following times: a) At 9:30, based on purchase and sale quotes reported by banks between 9:00 and 9:15; b) At 12:30, based on purchase and sale quotes reported by banks between 12:00 and 12:15; and c) At 15:30, based on purchase and sale quotes reported by banks between 15:00 and 15:15.
7. The quotes for other foreign currencies against the MZN, at each determination time referred to in the preceding paragraph, result from the cross between: a) The average purchase rate of the USD/MZN parity and the purchase (bid) quotes of the respective foreign currencies against the USD, available in the Reuters system at 9:00, 12:00 and 15:00; and SERIES I — NUMBER 201 b) The average sale rate of the USD/MZN parity and the sale (offer) quotes of the respective foreign currencies against the USD, available in the Reuters system at 9:00, 12:00 and 15:00. ARTICLE 5 Information Obligation
8. The Bank of Mozambique provides, via the Meticalnet software application - foreign exchange module - a window where banks must register daily their exchange rates for the purchase and sale of USD with the public.
9. Banks must submit to the Bank of Mozambique, during each reporting interval referred to in Article 4(3), via Meticalnet, the USD/MZN exchange rates to be applied in their transactions with the public.
10. In the absence of updated exchange rates during a specific reporting interval, the Bank of Mozambique considers, for the calculation of the weighted average exchange rate, the last available exchange rate in Meticalnet.
11. Banks must, whenever requested by the Bank of Mozambique, provide information regarding exchange rates and foreign exchange transactions. ARTICLE 6 Publication of Exchange Rates
12. The Bank of Mozambique makes available the average exchange rates determined at 9:30, 12:30 and 15:30 via Meticalnet, on its website, by email, fax and other established means.
13. Institutions covered by this Regulation must publish the reference exchange rate provided by the Bank of Mozambique in a visible and easily accessible location for the public. ARTICLE 7 Sanctioning Regime Violation of the provisions of this Regulation is punishable under the legislation applicable to credit institutions and financial companies. Price — 10.00 MT IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P.