Clarifies mandatory conversion

The Bank of Mozambique issued a circular on Monday clarifying the obligation on exporters to convert into the national currency 30% of revenues from exports of goods and services and investment abroad by resident entities. The central bank stresses that this does not cover income from payment of rents by non-resident entities for the use of properties belonging to residents located in national territory, if such payments are made to accounts domiciled in the national banking system. Such revenues are exempt from mandatory conversion, and may be kept entirely in foreign currency in the beneficiary’s account. Revenue related to remuneration such as wages for services provided by residents to embassies and other diplomatic and consular representations established in Mozambique are also exempt. The recipients of Circular no. 02/EFI/2021 of 12 February, which took effect on February 16, are credit institutions and financial companies subject to the supervision of the Bank of Mozambique.