Foreign Exchange Policies

  • Foreign exchange transactions are mainly regulated by the Bank of Mozambique (Banco de Moçambique, BOM).  The BoM notably regulates the following issues
Terms & conditions for granting prior authorization for the execution of foreign exchange transactions Terms & conditions for the execution of foreign exchange trading activity Limits related to the declaration for the import/export of foreign currency Terms & conditions for the remittance of
(a) export earnings of goods and services and
(b) investment revenue generated or held abroad
  • Exchange control rules have been modified recently. Main changes are the following
Foreign direct investment (FDI) is no longer subject to the prior authorization of the Bank of Mozambique. It only needs to be registered with the commercial bank handling the transactions. The obligation to convert a half of revenues resulting from the export of goods and services and foreign investment income into local currency is no longer in force. Resident entities are now allowed to hold the funds in foreign currency. A special foreign exchange regime—granting more flexibility in foreign exchange and financing operations —has been introduced for oil, gas, and mining sectors The Ministry of Economy and Finance is now able to approve the use of U.S. dollars, if the company (a) has invested at least USD 500 million and (b) more than 90 percent of its transactions are in U.S. dollars.

Inward remittance procedures

  • All foreign exchange transactions are subject to registration with the Bank of Mozambique, but not all require prior authorization.
  • The following foreign exchange transactions require the approval of the Bank of Mozambique (BoM)
Acquisition and sale of gold and silver coins Credits related to the transaction of goods or provision of services
Exchange rate arbitrage Export of gold, silver, platinum and other precious metals in bar, ingot or other not-worked form
Financial loans & credits Granting credit to residents in foreign currency, including by means of discounting bills, promissory notes, invoice statements, expressed or payable in domestic or foreign currency, where one party is a non-resident
Guarantees Import, export or re-export of foreign currency or other means of payment as well as bills of exchange, promissory notes and invoice statements, shares or bonds, whether domestic or foreign, or coupons and public debt securities
Opening and using accounts by non-residents in domestic currency, when related to capital transactions Opening and using accounts in foreign currency or in units of account used in international settlements or payments
Opening and using bank accounts with financial institutions abroad Physical import and export of monetary instruments
Purchase and sale of foreign credit securities Real estate investment
Transactions denominated in domestic currency in units of account that involve or may involve total or partial settlement of capital transactions carried out between residents and non-residents Transactions denominated in foreign currency in units of account that involve or may involve total or partial settlement of capital transactions carried out between residents and non-residents
Transactions involving participation units of collective investment undertakings Transactions on securities and other instruments traded on the money and capital markets
Transfer to and receipt from abroad of monetary instruments or means of payment Transfers in execution of insurance contracts

Transfer of funds abroad

  • The investor is allowed to transfer abroad funds related to the following operations
Amortisation and interest on loans taken out on the international financial market and applied in investment projects carried out in Mozambique Exportable profits resulting from investments eligible for export of profits under the Investment Law Regulation
Product of compensation for nationalisation or expropriation of property and rights constituting authorized investment, and re-exportable foreign capital invested, irrespective of the eligibility of the respective project for export of profits in accordance with the Investment Law Regulation Royalties or other income on indirect investments associated with the assignment and transfer of technology