Regulatory Alerts2017-05-31
Notice No. 11/GBM/2017 of May 31 - Regulation on the Issuance and Trading of Treasury Bills
The Bank of Mozambique issued Notice No. 11/GBM/2017 to approve the Regulation on the Issuance and Trading of Treasury Bills, broadening investor access to the primary money market to stimulate public securities trading. The regulation establishes a two-tier primary market auction system (Type A for monetary institutions and Type B for financial intermediaries and insurers), detailing placement procedures, subscription limits, discount-based pricing formulas, and proportional allocation criteria for excess demand. It further governs secondary market transactions between authorized institutions, with the public, and with the central bank, while mandating full nominal reimbursement at maturity and strict reporting to the Markets and Reserves Management Department.