The Bank of Mozambique has reduced its reserve requirement ratio by 100 basis points to 13.0% for liabilities denominated in local currency, the central bank said in a circular published on Tuesday on its website.
Circular No. 02/EMO/2019, issued by the Bank of Mozambique Monetary Stability Department, also said a decision was made to keep the reserve requirement ratio for banks’ liabilities or deposits denominated in foreign currency at 36.0%.
The decision, according to the statement, is due to the stability of the one-digit inflation rate, and the same level is expected for the coming months.
This update will take effect from the mandatory reserve period, which starts on 7 September. (Macauhub)