Introduction 

The Banco de Moçambique is, under the terms of article 132 of the Constitution of the Republic of Mozambique, the Central Bank of the Republic of Mozambique and it operates under a specific Act and subscribed international regulations applicable to the Republic of Mozambique.

 

The Banco de Moçambique, hereinafter designated BM, was created on May 17, 1975, through the Decree nº 2/75, pursuant to Lusaka Accords between the Frente de Libertação de Moçambique and the Portuguese Colonial Government signed on September 7, 1974, for Mozambique independence, having then inherited the assets and liabilities of Banco Nacional Ultramarino branch in Mozambique.

 

The main objective of the BM defined at its establishment was to perform the central and commercial bank functions. However, the liberalization process of the Mozambican economy undertaken in the context of the Economic Recovery Program (PRE – acronym in Portuguese) in 1987 led to the national financial system reforms, whose climax was marked by the institutional separation of commercial bank functions from those of the central bank within the BM.

 

The institutional separation of commercial bank functions from those of the central bank became effective in 1992, with the adoption of the Law 1/92, of January 3 – The Banco de Moçambique Organic Act – which defines the nature, objectives and functions of the BM in its capacity as the Central Bank. The commercial functions were then assigned to a new banking institution, the ex-Banco Comercial de Moçambique, which was created through Decree nº 3/92, of February 25.

 

Therefore, the main functions of the BM, as established in the Law 1/92, of January 3 – the Banco de Moçambique Organic Act – are as follows:

 

·      Banker to the Government;

·      Adviser to the Government in financial domain;

·      Controller and manager of foreign exchange and monetary policies;

·      Manager of the country’s external reserves;

·      Intermediary in monetary international relations; and

·      Supervisor of financial institutions.

 

The mission of the BM, as the central bank of the Republic of Mozambique, is to safeguard the domestic currency value and promote a sound and efficient national financial sector.

 

The strategic vision of the BM is to consolidate itself as an institution of excellence that contributes for the country’s macroeconomic stability.

 

The 2011/2013 Strategic Plan of the BM aims at achieving the following goals:

 

·         Promote monetary policy greater efficiency;

·         Ensure an efficient management of external reserves;

·         Ensure a strong, healthy, competitive and comprehensive financial sector;

·         Ensure a secure, efficient and modern National Payments Systems;

·         Reinforce the modernization of the human resources management system; and

  • Ensure an institutional management based on best practices.

 

The institutional values comprise the basic cultural values of the organization and represent a set of principles within which the bank operates in order to achieve the qualitative performance and the intended institutional success. Therefore, the achievement of the bank’s strategic vision mainly depends on the observance of the following fundamental values:

·        Transparency;

·        Commitment;

·        Self-development;

·        Competence;

·        Honesty; and

·        Diligence

 

The BM head-office is in Maputo, the capital city of Mozambique. The bank is currently represented by branches in Beira, Nampula, Pemba, Lichinga, Quelimane, Tete and Maxixe cities. Two new branches will be open shortly in Chimoio and Xai-Xai cities, thus completing the central bank representativeness throughout the country.