Mozambique Raises Foreign Currency Conversion Rate for Exporters to 50% Amid Shortage Concerns

The Bank of Mozambique has increased the mandatory foreign currency conversion rate for exporting companies from 30% to 50%. This decision aims to alleviate the ongoing foreign currency shortage, which has impacted various sectors, including fuel retail and baking. The Confederation of Business Associations of Mozambique (CTA) reported that numerous companies face delays in settling import invoices due to the scarcity of foreign currency. The measure, effective for 18 months, seeks to provide commercial banks with more dollars for the exchange market, enhancing flexibility in foreign currency management.