Bank of Mozambique
Mozambique's central bank, responsible for monetary policy, currency issuance, financial regulation and financial-system stability.
Last updated October 17, 2026
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Overview
The Bank of Mozambique, or Banco de Moçambique, is the central bank and monetary authority of Mozambique. It is a public institution headquartered in Maputo, with branches in Beira and Nampula. Unlike a commercial bank, it does not normally provide consumer deposit, lending or payment services to the general public. Its principal responsibilities are to formulate and implement monetary policy, preserve price and financial stability, issue Mozambique's currency, manage or advise on foreign-exchange policy, supervise banks and other regulated financial institutions, and act as banker and adviser to the government. The institution emerged after Mozambique became independent from Portugal in 1975. The new government assumed control of the Mozambican operations of Banco Nacional Ultramarino, the colonial bank that had performed issuing-bank functions. In 1977, the state consolidated most of the country's banking operations into the Bank of Mozambique through nationalization and institutional mergers. This gave the bank both central-banking and commercial-banking responsibilities during the early post-independence period. As Mozambique moved toward economic liberalization, those functions were separated: the bank's commercial operations were transferred to Banco Comercial de Moçambique in 1995, while the central bank retained responsibility for monetary governance and financial supervision. Banco Comercial de Moçambique was later privatized and merged with Banco Internacional de Moçambique, now associated with Millennium bim, in 2001. The Bank of Mozambique's modern mandate is grounded in the country's constitutional and banking legislation, including Law No. 1/92. It has sole authority to issue banknotes and coins and uses reserve requirements, policy interest rates, liquidity operations and foreign-exchange measures to influence financial conditions. It also licenses and supervises commercial banks, supports deposit-protection arrangements, serves as lender of last resort, and oversees parts of the insurance and microfinance sectors. The bank has increasingly emphasized financial inclusion, consumer access, anti-money-laundering controls and financial literacy, and participates in the Alliance for Financial Inclusion. The institution operates in a difficult macroeconomic environment marked by poverty, dependence on agriculture and commodities, exchange-rate volatility, inflation episodes, the 2016 hidden-loans crisis and concerns about governance and corruption. Inflation rose sharply in the mid-2010s, prompting monetary tightening. Later monetary-policy framework reforms were viewed positively by the IMF, though the bank continues to face pressure to strengthen supervision, transparency and financial-sector resilience. During the COVID-19 shock, it introduced liquidity and regulatory measures, including lower reserve ratios and temporary flexible loan-repayment arrangements. The bank moved its Maputo headquarters to a newly constructed high-rise building in 2018. Its national role extends beyond interest-rate decisions: it supports the safety and reliability of payments, regulates foreign-exchange transactions, represents Mozambique in international monetary affairs and advises the government on financial legislation. Its public image is therefore that of a sovereign institution rather than a consumer financial brand.
History
Mozambique's central banking system developed from the country's colonial financial institutions. Before independence, Banco Nacional Ultramarino served as the Portuguese territory's bank of issue and operated commercial banking activities. Following independence in 1975, the Mozambican government assumed control of that bank's local operations without compensation. These operations formed the core of the Bank of Mozambique. The government expanded the institution's role in 1977 by nationalizing most banks operating in the country. The Mozambican operations of Banco de Crédito, Comercial e Industrial, Banco Comercial de Angola and Casa Bancária de Moçambique were merged into the state banking structure, while some other institutions were closed. The resulting system combined central-bank responsibilities with commercial banking and reflected the centrally planned economic model adopted after independence. A separate development institution, Banco Popular de Desenvolvimento, was also created from predecessor organizations. The bank's institutional model changed during the transition toward economic liberalization. In 1992, legislation established a modern statutory framework for the central bank, including its role in monetary policy, currency issuance, foreign-exchange administration and financial supervision. In 1992 the bank opened a branch in Beira, extending its operations beyond the capital. A second regional branch opened in Nampula in 1996. In 1995, the government separated the Bank of Mozambique's commercial banking operations into Banco Comercial de Moçambique. That institution was privatized in 1997 and later merged with Banco Internacional de Moçambique in 2001. The separation allowed the Bank of Mozambique to concentrate on central-bank functions while Mozambique developed a more competitive commercial banking market. During the 2000s and 2010s, the bank dealt with inflation, exchange-rate pressures, economic liberalization and the expansion of financial services. Inflation accelerated sharply in the middle of the 2010s, reaching levels that prompted the bank to tighten policy. The 2016 hidden-loans crisis and wider concerns about corruption and money laundering increased demands for stronger supervision and public-sector transparency. In 2016, Rogério Zandamela succeeded Ernesto Gove as governor; his previous international financial experience was presented as relevant to the country's stabilization challenges. The Bank of Mozambique subsequently worked to improve its monetary-policy framework and financial-sector oversight. It also promoted financial inclusion, microfinance and public financial education. In 2018, the institution moved its headquarters to a newly constructed high-rise building in Maputo. In 2019, it introduced a new banking-supervision system and began infringement proceedings involving several banks. During the COVID-19 pandemic, the bank lowered reserve requirements, supported liquidity in both domestic and foreign currency and required banks to provide temporary flexibility to affected borrowers. Today, the Bank of Mozambique remains the country's central monetary institution. Its responsibilities include issuing the metical, maintaining financial stability, supervising banks and other regulated institutions, overseeing payment infrastructure, advising the government and representing Mozambique in international monetary affairs. Its policy environment continues to be shaped by inflation risks, public-debt and governance concerns, limited financial access and the economic effects of commodities and large-scale natural-resource investment.
- 2020
Pandemic response
[1]The bank reduced reserve ratios and introduced liquidity and loan-repayment measures to cushion the economic effects of COVID-19.
- 2019
Banking supervision is strengthened
[1]A new supervisory system was introduced and enforcement proceedings followed against several banks.
- 2018
Headquarters relocates
[1]The bank moved into a newly constructed 30-storey headquarters building in Maputo.
- 2016
Rogério Zandamela becomes governor
[1]Rogério Zandamela replaced Ernesto Gove as governor during a period of economic and governance pressure.
- 1996
Nampula branch opens
[1]A second regional branch was established in Nampula.
- 1995
Commercial operations spun off
[1]Commercial banking activities were transferred to Banco Comercial de Moçambique.
- 1992
Modern statutory framework
[1]Law No. 1/92 provided the principal legislative framework cited for the bank's central-banking mandate.
- 1992
Beira branch opens
[1]The bank established a regional branch in Beira.
- 1977
Nationalization and banking consolidation
[1]Most banks operating in Mozambique were nationalized or consolidated into the state banking system.
- 1975
Central bank established after independence
[1]The government took over Banco Nacional Ultramarino's Mozambican operations, creating the institutional foundation of the Bank of Mozambique.
Products and positioning
A sovereign central-bank institution focused on price stability, a sound financial system, secure currency and payments, and broader access to formal financial services.
Currency issuance · 1975
Mozambican metical banknotes and coins
The Bank of Mozambique has exclusive authority to issue Mozambique's notes and coins and manages the currency supply in support of monetary and price-stability objectives. It also administers the currency framework and participates in measures intended to preserve confidence in the metical.
Central banking · 1975
Monetary policy operations
The bank uses policy instruments such as interest-rate decisions, reserve requirements and liquidity management to influence inflation, credit conditions and financial stability. These operations are directed at the national economy rather than sold as consumer products.
Regulation · 1975
Banking and financial supervision
The institution licenses and supervises commercial banks and exercises regulatory powers over relevant financial institutions. Its supervisory role includes prudential oversight, enforcement, deposit-protection arrangements and lender-of-last-resort functions.
Financial inclusion
Financial inclusion programs
The bank supports policies intended to widen access to formal finance, including microfinance development, financial-literacy activity and engagement with national and international inclusion initiatives.
Controversies
2019
Banking-sector compliance and corruption concerns
The bank faced a challenging environment involving alleged corruption, money-laundering risks and weaknesses in financial-sector governance. Its response included tighter controls and a new supervisory system that led to infringement proceedings.
2018
Government payroll payment-system collapse
A failure affecting payments to government employees was reported after a software provider discontinued service over non-payment. The Bank of Mozambique received part of the criticism associated with the disruption.
Marketing campaigns
- 2019School financial-literacy project
Mozambique
The bank conducted workshops for students on planning, saving, investment and insurance, complemented by financial-literacy theater and cooperation with community radio stations. The initiative was intended to improve public understanding of financial services and saving across communities.
Outcome. The initiative was intended to improve public understanding of financial services and saving across communities.
Brand decisions
2020
COVID-19 liquidity and reserve-ratio responseStrategyBackground
The pandemic threatened liquidity, credit quality and economic activity in Mozambique.
Action taken
The bank introduced liquidity measures, including a reported foreign-currency credit line, and reduced reserve ratios from 13 percent to 11.5 percent for local currency and from 36 percent to 34.5 percent for foreign currency.
Aftermath
Commercial banks were also directed to provide temporary flexibility for affected borrowers, including renegotiation of loan terms through the end of 2020.
Reserve requirement. 13% local currency; 36% foreign currency → 11.5% local currency; 34.5% foreign currency (April 2020)
2015
Policy-rate increase to address inflationPrice changeBackground
Inflation accelerated during the middle of the decade, creating pressure for a restrictive monetary response.
Action taken
The bank raised its key interest rate by 100 basis points to 10.75 percent in February 2015.
Aftermath
The move was part of efforts to contain price growth and stabilize monetary conditions.
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