Maputo, 21 Jun (AIM) – Foreign citizens with business intentions may now invest within a year, in Mozambican territory, up to a million US dollars without prior authorization from the Central Bank.
According to a Bank of Mozambique statement, the measure, which is part of the new Foreign Exchange Law, Aims at remove barriers to foreign direct investment, and boost the foreign exchange market and international trade.
“The changes are the result of new foreign exchange regulations, already in force, to remove barriers to foreign investment in Mozambique and investments by residents abroad, as well as facilitating international trade, which is summed up in the creation of mechanisms to make foreign exchange operations more flexible through the gradual liberalization of the capital account”, reads the document.
According to the Director of the Financial Services Department of the Bank of Mozambique, Maria Majimeja, cited in Friday’s issue of the independent daily “O País”, the amounts that may be invested in a year by foreign citizens in the country without prior authorization from the central bank have increased from the previous 15.8 million meticais to 63.2 million meticais (from 250,000 dollars to one million dollars, at the current exchange rate).
The central bank has also established the obligation to make payments in national currency in all domestic transactions in the country and the harmonization of the various special exchange regimes in force for mining and hydrocarbon projects, without calling into question the commitments already made in this area.
“The aim is to speed up foreign exchange operations, guarantee a greater inflow of foreign capital and greater availability of foreign currency, as well as promoting the appreciation of the national currency and a stable, dynamic and robust foreign exchange market”, reads the note.
(AIM)
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