Mozambique: CTA foresees greater flexibility in foreign currency transactions – Notícias

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Mozambique: CTA foresees greater flexibility in foreign currency transactions – Notícias

2:58 CAT | 15 Aug 2022

In file CoM

The Confederation of Economic Associations of Mozambique (CTA) anticipates that the revision of the Foreign Exchange Law will make foreign currency transactions more flexible.

According to the vice-president of the CTA’s Financial Policies and Services Department, Oldemiro Belchior, approval of the device will render the business environment in Mozambique more favourable to economic agents dedicated to the purchase and sale of currency.

According to the source, the measure, already approved by the government, will give the country greater foreign currency liquidity for carrying out foreign trade operations, further contributing to earning revenue from export activity.

Belchior said that the bill would strengthen the national currency and the economic and social development of the country.

“What is expected is that there will be greater flexibility in terms of transactions in foreign currency and that it can, in fact, create a space or a favourable environment among economic agents who transact the purchase and sale of foreign currency,” Belchior said during the discussion of the proposed revision of the Foreign Exchange Law in Maputo on Wednesday.

“The Foreign Exchange Law will improve the import process, introducing better commercial transaction practices. There will also be foreign currency easing. Companies that operate in a flexible market will contribute to raising foreign currency,” Belchior added. He also expects the new law to attract foreign direct investment and improve the export process and indeed all international trade transactions, thereby promoting the investment and business environment in Mozambique.

READ: Mozambique: Revision of Foreign Exchange Law sent to Parliament

With the launch of the Economic Acceleration Measures Package by President Filipe Nyusi on Tuesday, Melchior said that it was opportune to discuss the proposed revision of the Foreign Exchange Law, as it would bring about structural changes contributing to macroeconomic stability. “This is the right moment to debate and reflect on this draft law, especially now that the government has announced a package of measures aimed at revitalising the Mozambican economy,” he noted.

Asked if the inflow of more foreign exchange into the country would not swamp the metical, Melchior said that he did not see the local currency weakening; on the contrary, the legislative reforms were conducive to improving the business environment.

“Obviously, appreciation of the metical is, without a doubt, essential to ensuring that companies can grow, produce and prosper in an exchange rate environment,” he explained, concluding: “So there is no risk of our currency weakening.”

Representatives of the Mozambican Insurance Association (AMS), the Mozambican International Petroleum Operators’ Association (AMOPI), economists and other guests participated in the event.

Source: Notícias