Regulation for the Settlement of Foreign Currency Cheques

BANCO DE MOÇAMBIQUE NOTICE No. 07/GGBM/97 Subject: Regulation for the Settlement of Foreign Currency Cheques

In exercise of the powers conferred upon me by Articles 28 and 94 of Law No. 28/91 of December 31, I approve the Regulation of the Interbank Settlement System of Foreign Currency Cheques, which shall be in force as follows:

Article 1 (Object and Purpose) The purpose of this Regulation is to establish the rules to be observed in the use of the Interbank Settlement System of Foreign Currency Cheques, with a view to standardizing procedures and timelines for such settlement among participating entities.

Article 2 (Scope of Application) For the purposes of this Regulation, the following are considered participating entities: a) Credit Institutions; b) Other entities that the Bank of Mozambique may determine.

Article 3 (Deposit of Cheques at the Bank of Mozambique)

1. Cheques drawn on the places of Maputo and Matola must be deposited by participating entities into the D.O. accounts at the Bank of Mozambique.
2. For cheques drawn on other localities, the procedure provided for in Article 6 shall be adopted.

Article 4 (Exchange Rate) Whenever a participating entity deposits a cheque expressed in a currency different from the currencies of the accounts it holds, the same shall be converted at the Exchange Rate of the Bank of Mozambique.

Article 5 (Good Collection Period)

1. The value of the deposit, made under the terms of paragraph 1 of Article 3, shall only be available after the Good Collection Period.
2. The Good Collection Period for cheques drawn on the places of Maputo and Matola is fixed at 48 hours.
3. For the purposes of paragraph 2 of this Article, the Bank of Mozambique shall forward the duly registered cheques to the drawn participating entities on the same date that the deposit took place.
4. If cheques are returned by the drawn participating entities within the established timeframes, this act must be registered, and the Bank of Mozambique shall be obliged to account for the operation and forward the returned cheques to the presenting entity on the same date.

Article 6 (Other Localities) The settlement of foreign currency cheques drawn on other localities is processed through collection between participating entities, and the drawn entities must provide for their settlement within a period of 25 business days.

Article 7 (Doubts) Doubts arising from the interpretation and execution of this Regulation shall be clarified by the Department of Issuance and Treasury of the Bank of Mozambique.

Maputo, June 9, 1997. THE GOVERNOR ADRIANO AFONSO MALEIANE