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The Bank of Mozambique has issued regulations to ensure more transparent exchange rates.
The new rules, dated 30 March, outlaw the practice of setting different exchange rates for the same currency, depending on the nature and type of financial operation involved. In the view of the central bank, this “compromises the transparency and credibility of the rates practiced on the exchange market”.
From now on, each bank or foreign exchange bureau may only practice a single selling and a single buying rate for each currency, though these rates may change during the day. Thus it will no longer be possible to set different exchange rates for bank notes, cheques, transfers from foreign banks, or other operations involving foreign currency.
Furthermore the spread between the buying and selling rates must be no more than two per cent.
Every day, the banks and exchange bureaus must announce their exchange rates in places where they can easily be consulted.
The rates set by the commercial banks and the exchange bureaus are then used by the central bank to fix a “reference exchange rate” of the Mozambican currency, the metical, against the US dollar.
This “reference rate” is a simple average of the rates used by the banks and exchange bureaus in their transactions with the public. The rates are reported to the Bank of Mozambique three times a day (morning, midday and afternoon), and the average exchange rate is worked out at 09.30, 12.30 and 15.30.
Through its computer application “MeticalNet”, the central bank makes available a window where the commercial banks must register, every working day, their dollar/metical exchange rates. The average rates are then published on the Bank of Mozambique’s own website.
Conversion into other foreign currencies is done by using the rates of those currencies against the dollar as cited by the Reuters news agency at 09.00, 12.00 and 15.00.
All commercial banks and exchange bureaus must publicise the central bank’s reference exchange rates in places where they can readily be consulted by the public.
The new regulations are now in force, and the references rates for Monday, 3 April, were a buying rate of 66.49 meticais to the dollar, and a selling rate of 67.78 – giving an overall average rate of 67.14 meticais to the dollarSource: AIM