Mozambique To Limit Credit Card Use Abroad, To Protect Its Economy

In a bid to stem foreign exchange outflows and protect its economy, which has been ravaged by a slump in commodity prices, the government of Mozambique plans to limit the use credit and debit cards by its citizens abroad.

This much was revealed by the Governor of the Bank of Mozambique, Ernesto Gove in Maputo, the country’s capital.

“The fall in prices of these exported goods results in an aggravation of the deficit in the balance of payments. This is why it’s an exceptional moment in that we need to take certain measures,” he said.

He added, “Authorities are still working on what the limits on the cards will be. These measures will come into force immediately, as soon as we decide what the limits should be.”

Also, the central bank also wants to ensure that exporters comply with a law requiring them to convert at least 50% of their export receipts into local currency.

A global decline in commodity prices has reduced Mozambique’s revenue from exports of coal, gas, sugar and cotton and its currency’s 40% plunge against the dollar makes the ‘metical’ the world’s worst performer this year.

Earlier in the week, the Central Bank of Nigeria also took similar measure, banning the use of bank cards – naira-denominated debit card and credit MasterCard, abroad in a bid to grow the country’s foreign reserves to significant levels.

Source: CP Africa.