Regulatory Alerts2020-03-16
Circular No. 01/EMO/2020, of 16 March - Approves the Reserve Requirement Rate and Revokes Circular No. 02/EMO/2019, of 3 September
The Bank of Mozambique issued Circular No. 01/EMO/2020 to establish the mandatory reserve requirement coefficient at 11.50% for national currency liabilities and 34.50% for foreign currency liabilities. The directive becomes effective for the reserve establishment period starting on 7 April 2020, officially revoking Circular No. 02/EMO/2019 and all contrary provisions. Any interpretation or application inquiries must be submitted to the Bank's Markets and Reserve Management Department.
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:
- The mandatory reserve coefficient, applicable to the national currency assessment base, at 11.50%.
- 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