Circular No. 01/EMO/2020, of 16 March - Approves the Reserve Requirement Rate and Revokes Circular No. 02/EMO/2019, of 3 September

Bank of Mozambique
Administration

MONETARY STABILITY DEPARTMENT
CIRCULAR NO. 01/EMO/2020

Maputo, 16 March 2020

SUBJECT: APPROVES THE RESERVE REQUIREMENT RATE AND REVOKES CIRCULAR NO. 02/EMO/2019, OF 3 SEPTEMBER

Pursuant to Article 6 of the Regulation on the Calculation and Establishment of Mandatory Reserves, approved by Notice No. 08/GBM/2019, of 17 June, the Board of Directors of the Bank of Mozambique, convened in an extraordinary session on 16 March 2020, resolved to set:

1. The mandatory reserve coefficient, applicable to the national currency assessment base, at 11.50%.
2. The mandatory reserve coefficient, applicable to the foreign currency assessment base, at 34.50%.

This Circular enters into force as of the reserve establishment period commencing on 7 April 2020 and revokes Circular No. 02/EMO/2019, of 3 September, and all provisions contrary thereto.

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

[Signature]
Jamal Omar
Administrator
BANK OF MOZAMBIQUE
Monetary Stability
Department