Mission, Functions and Organic Law
The Banco de Moçambique (BM) was established in 1975 by Decree No. 2/75 of May 17, under the commitments undertaken in the Lusaka Accords in 1974. It inherited the assets and values of the Department of Mozambique from the Banco Nacional Ultramarino.
According to Article 132 of the Constitution of the Republic of Mozambique, the BM is the central bank of the Republic of Mozambique and shall be governed by a specific legislation and the applicable international standards to which the Republic of Mozambique is bound.
The process of liberalizing the Mozambican economy, under the Economic Rehabilitation Program (PRE) in 1987, promoted the reform of the national financial system that culminated with the separation of the commercial and central functions of the bank.
The institutional separation of the BM's commercial function from its role as central bank took place in 1992, with the approval of Law 1/92, of 3 January - Organic Law - which defines the nature, objectives and functions of the BM as the central bank. Indeed, the Bank's Organic Law establishes that the BM is the central bank of the Republic of Mozambique, whose main objective is the preservation of the national currency.
The key functions of the BM are:
- Banker to the Government;
- Government's financial advisor;
- Advisor and supervisor of the monetary and exchange rate policies;
- Administrator of the country's external assets;
- Intermediary in international monetary relations;
- Supervisor of financial institutions.
Organic Law - January 3, 1992
The current political and economic outlook of the country pushes credit institutions towards taking a new position as drivers of economic development.
The implementation of the Economic Rehabilitation Program of the Banco de Moçambique, alongside international financial institutions, added to the need for greater functionality of the central bank as a maker and manager of monetary and credit policy, and supervisor of the national financial system.
The aforementioned make for the grounds for the establishment of Law No. 1/92, of January 3 - Organic Law of the Banco de Moçambique.