Notice No. 8/GBM/2015, of November 26 - Amendments to Notice No. 7/GBM/2013, of September 18 - Interbank Money Market Regulation

NOTICE NO. 8/GBM/2015
Maputo, November 26, 2015

SUBJECT: Amendments to Notice No. 7/GBM/2013, of September 18 – Interbank Money Market Regulation

Given the need to adjust Notice No. 7/GBM/2013, of September 18, to the current stage of development of the Interbank Money Market, with the objective of allowing Treasury Bonds to be used as one of the eligible instruments in Interbank Money Market operations, the Bank of Mozambique, exercising the powers conferred upon it by paragraph 1 of Article 21 of Law No. 1/92, of January 3 (Organic Law of the Bank), determines:

Article 1
The following are amended:
a) The fourth paragraph of Notice No. 7/GBM/2013, of September 18, regarding the Department at the Bank of Mozambique competent to clarify doubts arising in the interpretation and application of the Notice; and b) Paragraph 2 of Article 3 and Articles 10 and 13 of the Interbank Money Market Regulation approved by Notice No. 7/GBM/2013, of September 18, which shall henceforth read as follows:

«NOTICE NO. 7/GBM/2013, OF SEPTEMBER 18
Any doubts arising in the interpretation and application of this Notice shall be submitted to the Markets and Reserve Management Department of the Bank of Mozambique.

INTERBANK MONEY MARKET REGULATION
Article 3
[…]
2. In accordance with the Regulation on Repurchase and Reverse Repurchase Operations with Fixed Income Securities, the institutions referred to in paragraph 1 of this article may obtain funds in the form of demand deposits at the Bank of Mozambique, by ceding to other institutions participating in the market for dematerialized securities registered in security accounts at the Bank of Mozambique (Treasury Bills (BT)) and Monetary Authority Securities (TAM), on the Stock Exchange (Treasury Bonds (OT)) and other securities that may be authorized by the Bank of Mozambique.
Article 10
[…]
In liquidity transfer operations between participating institutions with securities as collateral and in liquidity regulation operations carried out by the Bank of Mozambique with participating institutions, OT, BT, TAM and other securities authorized by the Bank of Mozambique as being tradable in the IMM may be used as collateral.
Article 13
[…]
Operations concerning securities represented in book form, namely, in the form of OT, BT and TAM, materialized by their registration in security accounts opened at the Bank of Mozambique and the Stock Exchange of Mozambique (in the case of OT) in the names of their respective holders, must be registered in security accounts of the acquiring and/or ceding institutions, through their respective registrations or cancellations.
CHAPTER V
FINAL PROVISIONS»

Article 2
Entry into Force
This Notice shall enter into force on the date of its publication.

Ernesto Gouveia Gove
Governor