Bank of Mozambique sets limit for use of cards abroad at US$14,600/year

9 December 2015

Holders of debit and credit cards issued by banks operating in Mozambique can spend a maximum of 700,000 meticais (about US$14,600) per year on payments abroad, the central bank announced in a statement.

The measure aims to stop the abuse and overuse of international cards in commercial transactions, responsible for capital flight and other financial crimes, said the statement released on the Bank of Mozambique website.

The cases requiring the establishment of an exceptional limit must be justified, evaluated by the card issuers and subject to the decision of the Bank of Mozambique, added the announcement.

This measure comes into force on 1 January, 2016 and the announcement added that the international bank card issuer must give the holder a statement of commitment to comply with the payment threshold now established.

The statement also said the limit corresponds to the value to be assigned to each holder, regardless of the number of contracts signed with one or more issuers.

The Bank of Mozambique issued a separate statement saying it had not determined the automatic conversion of accounts in dollars at national banks for domestic currency.

The central bank said that a previous statement on the conversion and transfer of export earnings and imported capital aimed to “define procedures to eliminate incorrect situations characterised by arbitration of exchange rates for speculative purposes by certain holders of accounts in foreign currency foreign at commercial banks in the process of sale of foreign currency.” (macauhub/MZ)