The Bank of Mozambique has approved, by way of Notice No. 11/GBM/2019 (published in the Official Gazette on 15 January 2020), new rules for opening and operating bank accounts denominated in foreign currency. This Notice revokes and supersedes all regulations that governed this topic hitherto, in particular Notices 4/GBM/2018 and 8/GBM/2018, and Articles 105 and 106 of Notice No. 20/GBM/2017. The new regime can be summarized as follows:

i.  As a general rule, the opening of onshore and offshore bank accounts denominated in foreign currency by resident entities is subject to the prior approval of the Bank of Mozambique;
ii.  However, resident entities with a demonstrated relationship with non-resident entities (e.g., exporters or entities which generate or receive payments in foreign currency) are authorized to open onshore accounts denominated in foreign currency;
iii.  Non-resident entities may freely open foreign currency bank accounts in Mozambique, except if those accounts are related with capital transactions (in which Bank of Mozambique’s prior approval is required);
iv.  Resident exporters and investors are required to open and maintain a specific foreign currency bank account, denominated “Revenues Account”, which shall be used to receive exports proceeds and/or the proceeds of investments made abroad;
v.  The specific “Revenues Accounts” shall be segregated from other foreign currency bank accounts held by the accounts’ holder;
vi.  Foreign currency bank accounts can be used to deposit (i) export revenues, (ii) income generated by investments made abroad, (iii) foreign direct investment, (iv) loans contracted abroad, (v) grants received from foreign entities and (vi) other funds, provided they are duly justified;
vii.  Foreign currency bank accounts can be freely operated (in debit and credit transactions) in transactions of its holder with entities based abroad;
viii.  In domestic transactions, debit and credit transactions are mandatorily made by converting the funds into national currency, except in a very few and limited cases where operations can be concluded in foreign currency.

Special foreign exchange regimes (e.g., the regimes applicable to oil & gas operations) are grandfathered against the new rules and shall continue to be observed and applied. The new general rules would only apply to the extent that they are not incompatible with the purpose for which those special foreign exchange regimes were adopted.

Notice No. 11/GBM/2019 clarifies and formally establishes a practical orientation that the Bank of Mozambique has been implementing over the last 18 months: with a few exceptions, payments between resident entities must necessarily be settled in national currency.

Should you wish to receive additional information on this alert, please contact:
[email protected]