The Bank of Mozambique (BM) released on Tuesday its new Strategic Plan (SP) for the three-year period 2021-2023, which is to focus its activities on monetary stability; financial stability and inclusion; efficiency and security of the national payment system; and, corporate governance and management.

The first strategic pillar 'Monetary Stability', according to the document in our possession, proposes to strengthen the WB's forecasting and policy analysis system, orienting it towards an inflation targeting regime; to consolidate the use of the interest rate as the operational variable of monetary policy; to improve the legal and operational framework, aiming at gains in efficiency in the management of international reserves.

The second 'Financial Stability and Inclusion' aims to modernize the operational processes of supervision; improve the financial literacy levels of the Mozambican population; adapt the legal and regulatory framework of credit institutions and financial companies to international best practices; create effective mechanisms for crisis management and bank resolution; modernize the foreign exchange legal framework, with a view to gradually liberalizing the capital account; harmonize the WB methodology for collecting and processing statistical information on levels of financial inclusion and other relevant indicators with international best practices.

The third 'Efficiency and Security of the National Payment System' commits only to modernizing the legal and operational framework of the national payment system with a view to ensuring greater financial inclusion.

The last one, 'Corporate Governance and Management' should be dedicated to ensure the alignment of the WB's legal framework to the SADC central banks' model law; modernize the WB's business processes; ensure the alignment of the internal audit function to international best practices; modernize the WB's cybersecurity regulatory and operational framework.

Approved in a context of uncertainty due to the covid-19 pandemic, the WB says it is a guide for the preparation of activity, training and material investment plans, as well as the operating budget, during its lifetime.