Government of Mozambique approves foreign exchange control measures

3 December 2015

The government of Mozambique has approved a package of incentives for food production and foreign exchange control measures, said the spokesman of the Cabinet at the end of a meeting held in Maputo.

Mouzinho Saide also said that the package of measures included provision of foreign exchange “exceptionally” to import basic goods and an increase of foreign exchange intervention to ensure greater availability of foreign currency.

The spokesman said that public companies would be instructed to contribute to the replacement the dollar with the metical in the economy, as part of implementation of the foreign exchange law.

The metical has suffered a depreciation of over 40 percent against the dollar since the beginning of the year, accompanied by a fall in international prices of raw materials, with impact on imports, foreign currency supply and prices of goods.

In addition to incentives for industry, the measures provide for the re-launch of agricultural companies in order to “ensure more availability of services and goods in the country.”

On Monday, the Bank of Mozambique announced the introduction of limits on the use of credit and debit cards abroad in order to prevent foreign currency outflows. (macauhub/MZ)