Mozambique Reduces Foreign Payment Limits by Half for Credit/Debit Cards

Banco de Moçambique has reduced, by half, the value of payments made abroad using bank cards, a measure that affects credit, debit, or prepaid cards. This development is part of an ongoing trend in Mozambique, where it is becoming increasingly difficult for citizens to make purchases outside the country using bank cards.

The legal significance of this move lies in its potential impact on businesses and individuals who rely on international transactions. The reduction in payment limits may lead to increased costs for companies that import goods or services, while also affecting Mozambican residents who frequently travel abroad. Practitioners should monitor how this measure affects their clients' operations.

The relevant legal framework governing banking and foreign exchange in Mozambique includes the Banking Act (Law No. 21/2014) and the Foreign Exchange Act (Law No. 10/2006). The Banco de Moçambique, as the country's central bank, has regulatory powers to implement measures that control foreign exchange transactions.

The key parties involved are the Banco de Moçambique, which implemented this measure, and Mozambican citizens who rely on international transactions for their businesses or personal activities. Practitioners should advise their clients on how to adapt to these changes and explore alternative payment methods.