Bank of Mozambique
Encyclopedia
The Bank of Mozambique is the central bank
of Mozambique
. The bank
does not function as a commercial bank
, and has the responsibility of governing the monetary policies
of the country. The president
of the Republic appoints the governor. The bank is situated in the capital, Maputo
, and has two branches, one in Beira
and one in Nampula
.
for several centuries. After independence in 1975, the newly-created Government of Mozambique took over, without compensation, the Mozambican operations of Banco Nacional Ultramarino
, a Portuguese colonial bank that had been acting as the bank of issue for the colony. This became the nucleus of Bank of Mozambique.
In 1977 the government also nationalized almost all banks in the country, including the Casa Bancária de Moçambique, and the Mozambican operations of Banco de Crédito, Comercial e Industrial and Banco Comercial de Angola
, and merged them into Bank of Mozambique. At the same time it closed the operations of Banco de Fomento Nacional and Banco Pinto e Sotto Mayor. (The government permitted Banco Standard Totta de Moçambique to remain private.) It also created the Banco Popular de Desenvolvirmento by merging Crédito de Moçambique and Montepio de Moçambique.
In 1992, the Bank of Mozambique established a branch in Beira
. A branch in Nampula
followed in 1996.
In 1995, the government spun off the commercial banking operations of Bank of Mozambique into a newly created institution, the Banco Comercial de Moçambique (BCM). The government privatized BCM in 1997, and it merged with Banco Internacional de Moçambique (Millennium bim)
in 2001.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of Mozambique
Mozambique
Mozambique, officially the Republic of Mozambique , is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest...
. The bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
does not function as a commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
, and has the responsibility of governing the monetary policies
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
of the country. The president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
of the Republic appoints the governor. The bank is situated in the capital, Maputo
Maputo
Maputo, also known as Lourenço Marques, is the capital and largest city of Mozambique. It is known as the City of Acacias in reference to acacia trees commonly found along its avenues and the Pearl of the Indian Ocean. It was famous for the inscription "This is Portugal" on the walkway of its...
, and has two branches, one in Beira
Beira, Mozambique
Beira is the second largest city in Mozambique. It lies in the central region of the country in Sofala Province, where the Pungue River meets the Indian Ocean. Beira had a population of 412,588 in 1997, which grew to an estimated 546,000 in 2006...
and one in Nampula
Nampula
Nampula is the capital city of Nampula Province in Mozambique.It has a population of 471,717 making it the third largest city in Mozambique after Maputo and Beira. It is home to the Mozambique National Ethnographic Museum, several markets, cathedrals and mosques.It is also the center of business...
.
History
Most of Mozambique was a Portuguese overseas territoryPortuguese East Africa
Mozambique or Portuguese East Africa was the common name by which the Portuguese Empire's territorial expansion in East Africa was known across different periods of time...
for several centuries. After independence in 1975, the newly-created Government of Mozambique took over, without compensation, the Mozambican operations of Banco Nacional Ultramarino
Banco Nacional Ultramarino
Banco Nacional Ultramarino was a Portuguese bank with operations throughout the world, especially in Portugal's former overseas provinces. It ceased existence as an independent legal entity in Portugal following its merger with Caixa Geral de Depósitos, the government-owned savings bank, in...
, a Portuguese colonial bank that had been acting as the bank of issue for the colony. This became the nucleus of Bank of Mozambique.
In 1977 the government also nationalized almost all banks in the country, including the Casa Bancária de Moçambique, and the Mozambican operations of Banco de Crédito, Comercial e Industrial and Banco Comercial de Angola
Banco de Poupança e Crédito
Banco de Poupança e Crédito is a government-owned, full service bank in Angola. With some 68 branches, including one in Cabinda, it has the largest branch network in the country.-History:...
, and merged them into Bank of Mozambique. At the same time it closed the operations of Banco de Fomento Nacional and Banco Pinto e Sotto Mayor. (The government permitted Banco Standard Totta de Moçambique to remain private.) It also created the Banco Popular de Desenvolvirmento by merging Crédito de Moçambique and Montepio de Moçambique.
In 1992, the Bank of Mozambique established a branch in Beira
Beira, Mozambique
Beira is the second largest city in Mozambique. It lies in the central region of the country in Sofala Province, where the Pungue River meets the Indian Ocean. Beira had a population of 412,588 in 1997, which grew to an estimated 546,000 in 2006...
. A branch in Nampula
Nampula
Nampula is the capital city of Nampula Province in Mozambique.It has a population of 471,717 making it the third largest city in Mozambique after Maputo and Beira. It is home to the Mozambique National Ethnographic Museum, several markets, cathedrals and mosques.It is also the center of business...
followed in 1996.
In 1995, the government spun off the commercial banking operations of Bank of Mozambique into a newly created institution, the Banco Comercial de Moçambique (BCM). The government privatized BCM in 1997, and it merged with Banco Internacional de Moçambique (Millennium bim)
Banco Internacional de Moçambique (Millennium bim)
Banco Internacional de Moçambique, SA, is the largest bank in Mozambique. In mid-2006, the bank engaged in a major rebranding exercise and today trades as Millennium bim, synchronizing its name and brand with that of its major shareholder - Portugal-based Millennium bcp. The bank has a market...
in 2001.
Past Governors of the Bank of Mozambique
- Adriano Maleiane - 1991-2006
- Eneias Comiche - 1986-1991
- Prakash Ratilal - 1981-1986
- Sérgio Vieira - 1978-1981
- Alberto Cassimo - 1975-1977
See also
- Central banks and currencies of AfricaCentral banks and currencies of AfricaThere are two African currency unions associated with multinational central banks; the West African Banque Centrale des Etats de l'Afrique de l'Ouest and the Central African Banque des Etats de l'Afrique Centrale...
- Economy of MozambiqueEconomy of MozambiqueThe economy of Mozambique has developed since the end of the Mozambican Civil War , but the country is still one of the world's poorest and most underdeveloped...
- List of central banks
- Mozambican meticalMozambican meticalThe metical is the currency of Mozambique, abbreviated with the symbol MZN or MTn. It is nominally divided into 100 centavos.-First metical :...