Notice No. 6/GBM/2017, of April 20 – Establishes the Principle of Exchange Rate Unity and Differential

BOLETIM DA REPÚBLICA PUBLICAÇÃO OFICIAL DA REPÚBLICA DE MOÇAMBIQUE 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. 3/GBM/2017: Alters paragraph b) of no. 2 of Notice No. 3/GBM/2016, of November 14. Notice No. 4/GBM/2017: Approves the Regulation on the Reference Exchange Rate of the Foreign Exchange Market. Notice No. 5/GBM/2017: Establishes the Valuation Exchange Rate for the conversion, into national currency, of assets and liabilities in foreign currency and revokes Notice No. 3/GGBM/2005, of May 25. Notice No. 6/GBM/2017: Establishes the principle of exchange rate unity and maximum differential (spread) between foreign currency buying and selling rates and revokes Notice No. 1/GGBM/2005, of May 25. Thursday, April 20, 2017 I Series — Number 61

BANK OF MOZAMBIQUE Notice No. 3/GBM/2017 of April 20 Given the need to alter the composition of the provisional Board of Directors of Moza Banco, SA designated through Notice No. 3/GBM/2016, of November 14, the Bank of Mozambique, under Articles 81 and 84 of Law No. 15/99, of November 1 – Credit Institutions and Financial Societies Law, as amended by Law No. 9/2004, of July 21, determines:

Article 1. Paragraph b) of no. 2 of Notice No. 3/GBM/2016, of November 14, is amended, which shall henceforth read as follows: «1 . ………….........……………………………………… 2. ………………………….........…………………………… a) ...………………………………......…………………… b) Joana Jacinto David Matsombe - Administrator; c) .………………………...............……………………… 3 .………………………………..........………………………»

Art. 2. This Notice enters into force on the date of its publication. Art. 3. Any doubts arising from the interpretation and application of this Notice shall be submitted to the Regulation and Licensing Department of the Bank of Mozambique. Maputo, March 29, 2017. – The Governor, Rogério Lucas Zandamela

Notice No. 4/GBM/2017 of April 20 Given the need to establish a reference exchange rate that is unique and transparent, to be used by credit institutions and financial societies in foreign exchange operations, the Bank of Mozambique, using the powers conferred by paragraphs a) and c) of Article 30 of Law No. 1/92, of January 3 - Organic Bank Law, determines:

1. The Regulation on the Reference Exchange Rate of the Foreign Exchange Market, attached to this Notice, is approved and forms an integral part thereof.
2. This Notice enters into force on the date of its publication and revokes all provisions contrary thereto. Any doubts arising from the interpretation and application of this Notice shall be submitted to the Markets and Reserve Management Department of the Bank of Mozambique. Maputo, March 30, 2017. – The Governor, Rogério Lucas Zandamela.

Regulation on the Reference Exchange Rate of the Foreign Exchange Market ARTICLE 1 (Subject matter and definition)

1. This Regulation establishes the reference exchange rate of the foreign exchange market and the methodology for its calculation. 360 I Series — Number 61
2. For the purposes of this Regulation, foreign exchange market is understood as the segment for buying and selling foreign currency between banks and the public, between exchange houses and the public, as well as the Interbank Foreign Exchange Market (MCI). ARTICLE 2 (Scope of application) This Regulation applies to banks and exchange houses. ARTICLE 3 (Reference exchange rate) The reference exchange rate of the foreign exchange market is the average exchange rate of operations between banks and the public, calculated in accordance with Article 4 of this Regulation. ARTICLE 4 (Methodology for calculating the reference exchange rate)
3. The reference exchange rate of the United States Dollar (USD) against the Metical (MZN) is the simple average of the average exchange rates determined at 9:30, 12:30 and 15:30 of each business day.
4. The average exchange rate of the USD/MNZ parity is determined: a) At 9:30, based on information reported in the interval between 09:00 and 09:15; b) At 12:30, based on information reported in the interval between 12:00 and 12:15; and c) At 15:30, based on information reported in the interval between 15:00 and 15:15.
5. The quotation of the remaining foreign currencies against the MZN, at each determination time referred to in paragraph 2 of this article, results from the cross between the average USD/MNZ parity available on Meticalnet and the exchange rates of the respective foreign currencies against the USD, available on Reuters at 09:00, 12:00 and 15:00. ARTICLE 5 (Information duty)
6. The Bank of Mozambique provides, through the MeticalNet software application - foreign exchange module - a window where banks must register daily their exchange rates for buying and selling USD with the public.
7. Banks must submit to the Bank of Mozambique, in each reporting interval referred to in paragraph 2 of Article 4, through Meticalnet, the USD/MNZ exchange rates to be applied in their operations with the public.
8. In the absence of an update to exchange rates in a given reporting interval, the Bank of Mozambique considers, for the purpose of calculating the average exchange rate, the last available exchange rate on Meticalnet. ARTICLE 6 (Publication of exchange rates)
9. 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 means it may indicate.
10. Institutions covered by this Notice must publish the reference exchange rate provided by the Bank of Mozambique in a visible and easily accessible location for the public. ARTICLE 7 (Penalties) Non-compliance with the provisions of this Regulation is punishable in accordance with applicable legislation.

Notice No. 5/GBM/2017 of April 20 Given the need to update the criteria for determining the valuation exchange rate used by credit institutions and financial societies, in converting into national currency their assets and liabilities expressed in foreign currency, due to the institutionalization of the reference exchange rate of the foreign exchange market which alters previously established criteria, the Bank of Mozambique, using the powers conferred by Article 71 of Law No. 15/99, of November 1 – Credit Institutions and Financial Societies Law, determines:

ARTICLE 1 (Subject matter) This Notice establishes the valuation exchange rate for converting, into national currency, assets and liabilities expressed in foreign currency. ARTICLE 2 (Scope of application) This Notice applies to credit institutions and financial societies. ARTICLE 3 (Valuation exchange rate)

1. Credit institutions and financial societies must use the reference exchange rate of the foreign exchange market calculated by the Bank of Mozambique and published at 15:30 on each business day, for converting into national currency the value of their assets and liabilities expressed in foreign currency.
2. The value of gold is determined by the daily average quotation, in United States Dollars, on the London market at 9:00, 12:00, and 15:00 on each business day, to which the reference USD/MNZ exchange rate is applied. ARTICLE 4 (Entry into force and revocation) This Notice enters into force on the date of its publication and revokes Notice No. 3/GGBM/2005, of May 25, as well as other provisions contrary thereto. ARTICLE 5 (Clarification of doubts) Any doubts arising from the interpretation and application of this Notice shall be submitted to the Prudential Supervision Department of the Bank of Mozambique. Maputo, March 30, 2017. – The Governor, Rogério Lucas Zandamela.

APRIL 20, 2017 361 Notice No. 6/GBM/2017 of April 20 Authorized entities for foreign exchange arbitration in Mozambique have set different exchange rates for the same currency parity, depending on the nature and purpose of the operation carried out, which creates a multiplicity of quotations, thereby compromising the transparency and credibility of exchange rates applied in the foreign exchange market. Thus, showing the need to institute the principle of exchange rate unity, to guarantee greater transparency and credibility of exchange rates applied in the foreign exchange market, as well as establish the methodological procedure for fixing the maximum differential (spread) between foreign currency buying and selling rates, in order to avoid divergent interpretations and the occurrence of distortions in the foreign exchange market, the Bank of Mozambique, using the powers conferred by paragraph a) of Article 30 of Law No. 1/92, of January 3 - Organic Bank Law, combined with paragraph 2 of Article 130 of Decree No. 83/2010, of December 31 - Foreign Exchange Law Regulation, determines: ARTICLE 1 (Subject matter) This Notice establishes the principle of exchange rate unity and the maximum differential (spread) between foreign currency buying and selling rates. ARTICLE 2 (Scope) This Notice applies to banks and exchange houses. ARTICLE 3 (Unity of exchange rates) Banks must set unique exchange rates in operations with the public, regardless of their nature and purpose, namely buying and selling foreign currency involving notes, coins, foreign exchange and other payment or receipt operations with the outside. ARTICLE 4 (Duty to observe the spread)

1. Institutions covered by this Notice must observe a maximum differential (spread) of 2% between their respective buying and selling exchange rates, in operations carried out with their clients.
2. For the purposes of the preceding paragraph, institutions must observe the valuation criterion for the daily weighted average cost of purchased foreign currency as set out in the Annex to this Notice. ARTICLE 5 (Publication of the exchange rate table) Institutions covered by this Notice must publish the exchange rate table in a visible and easily accessible location for the public. ARTICLE 6 (Penalties) Non-compliance with the provisions of this Notice is punishable in accordance with applicable legislation. ARTICLE 7 (Clarification of doubts) Any doubts arising from the interpretation and application of this Notice shall be submitted to the Prudential Supervision Department of the Bank of Mozambique. ARTICLE 8 (Revocation) Notice No. 1/GGBM/2005, of May 25, is revoked, as well as other instruments contrary thereto. ARTICLE 9 (Entry into force) This Notice enters into force on the date of its publication. Maputo, March 30, 2017. – The Governor, Rogério Lucas Zandamela. Annex Valuation Criterion for Weighted Average Cost
3. The weighted average cost of buying foreign currency and its corresponding selling price must be based on the purchase prices and the quantity of foreign currency acquired, in each transaction, applying the following formulas: (PC0 * Q0 + P1 * Q1 + P2 * Q2 + P3 * Q3 + .... +Pn * Qn) ∑n i = 0 Qi PC = PV = PC (1+S); S ≤ 2%
4. For the purposes of the formulas indicated in the preceding paragraph: a) PC0 is the weighted average cost of foreign currency purchases from the previous day; b) Q0 is the foreign currency balance from the previous day; c) P1,P2,P3,…,Pn are the different acquisition prices of foreign currency, in each transaction, throughout the day; d) Qi is the quantity of foreign currency acquired, in each transaction, throughout the day; e) PC is the weighted average cost of buying foreign currency; f) PV is the selling price of foreign currency; and g) S is the maximum differential (spread) applied in buying and selling foreign currency.

Price — 14.00 MT IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P.