Circular No. 02/EMO/2019, September 3 – Amendment to Circular No. 01/EMO/2019 on the Reserve Requirement Incidence Rate

___ Bank of Mozambique ___

Administration

MONETARY STABILITY DEPARTMENT CIRCULAR NO. 02/EMO/2019

Maputo, September 3, 2019

SUBJECT: Amendment to Circular No. 01/EMO/2019, of March 6, on the Reserve Requirement Incidence Rate

As a result of monitoring the evolution of economic-financial indicators and risk factors, the Bank of Mozambique has decided to reduce the mandatory reserve coefficient by 100 basis points for liabilities denominated in national currency, and to maintain the mandatory reserve coefficient for liabilities denominated in foreign currency.

In these terms, under Article 6 of Notice No. 08/GBM/2019, of June 17, the Bank of Mozambique determines:

1. The incidence rate for mandatory reserves applicable to the national currency incidence base is set at 13.00%.

2. The incidence rate for mandatory reserves applicable to the foreign currency incidence base remains at 36.00%.

3. This Circular enters into force immediately and takes effect from the mandatory reserve building period starting on September 7, 2019.

4. This Circular revokes Circular No. 01/EMO/2019, of March 6, and all provisions to the contrary.

Any doubts arising from the interpretation and application of this Circular shall be submitted to the Markets and Reserve Management Department of the Bank of Mozambique.

BANK OF MOZAMBIQUE Monetary Stability Department

Benedita Maria Guimino Administrator