The Bank of Mozambique published measures tightening foreign-exchange rules for the re-export of petroleum products and introducing an exceptional, temporary prudential regime that changes the minimum regulatory provisioning percentages for overdue credit. For petroleum product re-exports, related payments may not be made using foreign currency sold by the national banking system. Re-exporters must repatriate proceeds by bank transfer within 30 days of the shipment date, and the intermediary bank must convert the full amount received into domestic currency at the spot exchange rate at the time of receipt. The notice defines “petroleum products” broadly (including refining derivatives such as liquefied petroleum gases, gasolines, aviation fuels, diesel, fuel oils, lubricants, paraffins, solvents and bituminous products, as well as compressed natural gas and other gaseous fuels used exclusively as carburants, excluding pure biofuels), revokes Bank of Mozambique Notice No. 2/GBM/2023, and provides that breaches are punishable under Law No. 28/2022. On provisioning, the prudential notice applies to all supervised credit institutions and financial companies, including those that do not prepare financial statements under International Financial Reporting Standards, with necessary adaptations. It introduces, for a 12-month period from entry into force, exceptional minimum provisioning percentages for overdue credit under the framework of Bank of Mozambique Notice No. 16/GBM/2013, including specified categories such as exposures secured by a first mortgage over the borrower’s residence, real-estate financial leasing contracts, and exposures secured by a first mortgage over a commercial building, with minimum rates ranging from 1.00% to 100.00%. Both measures enter into force on publication, with interpretative queries directed to the Bank of Mozambique’s foreign-exchange licensing and control function for the re-export rules and its Prudential Supervision Department for the provisioning regime.
Bank of Mozambique 2025-04-09
Bank of Mozambique restricts foreign-exchange arrangements for petroleum re-exports and sets 12-month exceptional minimum provisioning rates for overdue credit
The Bank of Mozambique has tightened foreign-exchange rules for petroleum product re-exports, requiring proceeds to be repatriated and converted into domestic currency within 30 days. Additionally, a temporary prudential regime alters minimum regulatory provisioning percentages for overdue credit, applicable to all supervised credit institutions for 12 months. Both measures are effective immediately, with breaches punishable under existing law.