Africa-Press – Mozambique. The relief of mandatory reserves of financial institutions in Mozambique, decided in September by the central bank, “allowed for an injection” of over US$500 million (433 million euros) in the financial system, which may contribute to economic recovery, according to the governor.
Rogério Zandamela was speaking Wednesday at the opening of the coordinating council of the Bank of Mozambique (BM), in Nampula, northern Mozambique, at a time when several sectors are trying to recover from losses caused by the pandemic.
The easing of the coefficients of obligatory reserves in domestic and foreign currency was decided “in view of the positive results” of the indicators analysed by the Monetary Policy Committee, noted the governor of the BM.
Real gross domestic product posted annual growth of around 2 percent in the second quarter, year-on-year inflation remains “within the single-digit band (6 percent)” and the metical (Mozambican currency) “has appreciated 15 percent against the US dollar since January.”
“Additionally, we have strengthened Mozambique’s external position, with the maintenance of gross international reserves at comfortable levels, which allows us to cover more than six months of imports,” he added.
Rogério Zandamela noted that the rise in international reserves was also due to “the recent allocation of Special Drawing Rights by the International Monetary Fund [IMF] in the equivalent of US$308 million,” (around 267 million euros).
The meetings of the coordinating councils of sectors and Mozambican state institutions usually serve to take stock and look to the future.
The fight against money laundering and financing of terrorism are on the horizon to improve the integrity of the financial system, Zandamela said, noting the signing of a memorandum of understanding with the French government to implement a technical assistance programme in the area.
At the same time, there are several legislative and legal initiatives proposed by the BM awaiting consideration.
Among them is the Law on the Legal Regime of Bank Accounts, with the objective of making it mandatory for financial institutions to provide a “basic account”, aiming to “expand access to financial services by the neediest people”.
Another initiative is the regulatory framework that creates the Single Bank Identification Number that will allow each customer to be identified from a single number by all credit institutions and financial companies operating in the country. Also awaiting consideration is the proposal to review the Foreign Exchange Law, with the aim of “providing greater discipline to market operators, in a context of gradual liberalisation of foreign exchange operations,” he concluded.
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