Maputo restricts foreign exchange deals

MOZAMBIQUE had instituted foreign exchange restrictions, Standard Bank Group’s local unit told account holders in the cash-strapped nation.

“In response to restrictions on the import of foreign currency notes by the Mozambican Reserve Bank, Standard Bank has been compelled to administer the following restrictions in managing this situation,” the lender said.

“Effective immediately, foreign currency cash withdrawal and sale of foreign currency by account debit shall observe the following monthly limits: $500, R1 000 and €500.”

Bank of Mozambique had not issued any new regulations, Eliana Namburete, a spokeswoman at the central bank, said.

Reserves

In June, Mozambique held foreign reserves equivalent to 3.2 months of imports, not including merchandise for megaprojects, central bank governor Ernesto Gove said, without giving a figure.

The metical has 31 percent against the fallen dollar this year, adding to losses of 32 percent in 2015, according to data compiled by Bloomberg. It closed trading 1 percent weaker at 69.50 against the dollar in Maputo.

The coal-producing nation, which is also trying to develop gas fields that the government says may make it the thirdbiggest exporter of liquefied natural gas, owes foreign investors $9.84 billion and has a domestic debt of $1.8bn.

Standard & Poor’s Global Ratings believes the nation’s public debt is equal to 90 percent of its gross domestic product. – Bloomberg