Regulatory Alerts2019-10-29
Notice No. 08/GBM/2019 of June 17 - Regulation on the Calculation and Establishment of Mandatory Reserves
The Bank of Mozambique issued Notice No. 08/GBM/2019 to update the regulatory framework for calculating and maintaining mandatory reserves, thereby enhancing liquidity management flexibility for credit institutions. The regulation requires institutions to compute reserve liabilities based on monthly average demand deposits from residents, non-residents, and the state, segregated by currency and converted to US dollars, with compliance verified through a daily average balance formula. It enforces strict submission deadlines, imposes escalating financial penalties and account freezes for reserve shortfalls or late reporting, and grants a maximum three-month exemption for newly authorized institutions.
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