Regulatory Alerts2021-04-15
Circular No. 01/EMO/2021, of 15 April - Determination of the Foreign Exchange Market Quota for OTC Derivatives Transactions
The Bank of Mozambique requires financial counterparties to hold a minimum 2% Foreign Exchange Market quota to enter into over-the-counter (OTC) derivatives transactions. This quota is calculated as the ratio of a counterparty's transaction volume to the total monthly spot foreign exchange transactions conducted by banks with the public, converted to US dollars. Additionally, transactions with any single counterparty in a given month are capped at 50% of the entity's allocated quota, with official quota data published via the Meticalnet SAP platform.
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