Circular No. 02/EMO/2018, August 31 - Reserve Requirement Rate

___ Banco de Moçambique ___
Administration

MONETARY STABILITY DEPARTMENT
CIRCULAR NO. 02/EMO/2018
Maputo, August 31, 2018

SUBJECT: Amendment of Circular No. 01/EMO/2018, dated March 1, regarding the Reserve Requirement Rate

The Monetary Policy Committee (MPC) of Banco de Moçambique, meeting in its Session on August 30, 2018, resolved to increase the reserve requirement coefficient (RR) for foreign currency liabilities by 500 basis points and maintain the reserve requirement coefficient for national currency liabilities.

In these terms, under Article 6 of Notice No. 12/GBM/2017, dated June 9, Banco de Moçambique determines:

1. The reserve requirement rate applicable to the national currency incidence base remains at 14.00%.

2. The reserve requirement rate applicable to the foreign currency incidence base is set at 27.00%.

3. This Circular takes immediate effect and produces effects from the reserve requirement accumulation period starting on September 7, 2018.

4. This Circular revokes Circular No. 01/EMO/2018, dated March 1, and all provisions contrary thereto.

Any doubts arising from the interpretation and application of this Circular must be submitted to the Markets and Reserve Management Department of Banco de Moçambique.

BANCO DE MOÇAMBIQUE
Monetary Stability Department
Felisberto Navalha
Administrator