The Bank of Mozambique issued a circular requiring credit institutions to report foreign exchange position limits and market risk using exceptional annexed prudential templates, to align reporting with the exceptional regime for the foreign exchange position limit. The temporary reporting applies to the templates for Table IX (foreign exchange position limit) and Table XII.1 (market risk) established under Circular No. 1/SCO/2013, with submission to be made through the Banking Supervision Application (BSA). The annexed instructions set out how to complete the reports, including the treatment of spot and forward foreign exchange transactions and the calculation basis for market risk capital requirements as the higher of global net long and net short positions. The circular entered into force on 1 August 2025 and applies for 365 days, with interpretive and application questions to be directed to the Bank’s Prudential Supervision Department.
Bank of Mozambique 2025-08-01
Bank of Mozambique mandates one-year temporary prudential reporting formats for FX position limits and market risk
The Bank of Mozambique issued a circular mandating credit institutions to report foreign exchange position limits and market risk using specific prudential templates, aligning with the exceptional regime for foreign exchange position limits. The temporary reporting applies to templates under Circular No. 1/SCO/2013, with submissions via the Banking Supervision Application. The circular is effective from 1 August 2025 for one year.