Mozambique's central bank just changed the rules for companies that sell things overseas. These businesses must swap half their foreign money into local cash instead of just thirty percent as before. This helps fix a big problem where many firms cannot find dollars to buy what they need. The bank wants more foreign cash to flow through local markets during hard times. This rule stays active for the next year and a half.
Business groups begged for help because they faced serious trouble. Last month, sixty-three different companies told leaders they couldn't pay their bills for materials and goods from other countries. Some waited over six months for banks to give them foreign money. Gas stations across Mozambique ran empty when fuel sellers couldn't buy more gas from abroad. Bakeries struggled because they couldn't buy wheat since almost none grows inside the country.
The bank made this decision as the money boss for the whole nation. Their notice explains how export earnings and foreign investments must come back home properly. They call this the "repatriation and conversion" system. Every company dealing with foreign cash transactions must follow these rules according to the Foreign Exchange Law. The higher conversion rate gives banks more room to manage scarce dollars.
The Confederation of Business Associations pushed hard for action. They warned that many companies might close without enough foreign currency. People notice empty shelves and missing products in stores. When fuel pumps run dry, it affects everyone who needs to travel or move goods. Bread makers face extra challenges since they depend almost completely on wheat from other countries to make daily food for regular citizens.
The measure aims to prevent bigger economic problems by making sure more dollars enter the system. Regular banks can then help more customers who need to import basic supplies. Most businesses expressed relief about the change despite needing to convert more earnings. Companies handling exports, services abroad, or foreign loans all fall under these updated guidelines. The central bank hopes this step will ease pressure during what they call "the current socio-economic situation."
Business groups begged for help because they faced serious trouble. Last month, sixty-three different companies told leaders they couldn't pay their bills for materials and goods from other countries. Some waited over six months for banks to give them foreign money. Gas stations across Mozambique ran empty when fuel sellers couldn't buy more gas from abroad. Bakeries struggled because they couldn't buy wheat since almost none grows inside the country.
The bank made this decision as the money boss for the whole nation. Their notice explains how export earnings and foreign investments must come back home properly. They call this the "repatriation and conversion" system. Every company dealing with foreign cash transactions must follow these rules according to the Foreign Exchange Law. The higher conversion rate gives banks more room to manage scarce dollars.
The Confederation of Business Associations pushed hard for action. They warned that many companies might close without enough foreign currency. People notice empty shelves and missing products in stores. When fuel pumps run dry, it affects everyone who needs to travel or move goods. Bread makers face extra challenges since they depend almost completely on wheat from other countries to make daily food for regular citizens.
The measure aims to prevent bigger economic problems by making sure more dollars enter the system. Regular banks can then help more customers who need to import basic supplies. Most businesses expressed relief about the change despite needing to convert more earnings. Companies handling exports, services abroad, or foreign loans all fall under these updated guidelines. The central bank hopes this step will ease pressure during what they call "the current socio-economic situation."
