The government privatized BCM in 1997, and it merged with Banco Internacional de Moçambique (Millennium bim) in 2001.

Mozambique had transformed to a country with central planned economy from an incipient industrializing colonial society after the independence.

[8] Though economic conditions have improved over last decade, the country was remaining on a subdued growth trajectory following the 2015 commodity price shock and 2016 hidden loans crisis.

Over the past few years, Mozambique has gained a wide attraction from international investors with the prospect of vast mineral wealth offered by large-scale gas discoveries and the potential of its fledgling mining sector.

But the raging civil wars and widespread corruptions hampered the utilization of these natural resources in a productive way.

In that context regaining the stability through improved economic governance and transparency is the main responsibility vested on BOM.

Mozambique has made significant progresses in areas of monetary stabilization and economic liberalization throughout last decade.

[11] But still the obstacles it was inherited from colonial era like extreme poverty, weak institutions, and poor access to social services, and polarization of benefits of economic growth had hindered the progress.

But there are controversies over the financial and monetary policies of the bank as it couldn't prevent corruptions in the lending market.

This strategic plan mainly focuses on ensuing public interests amid growing privatization in the country.

Mozambican president Filipe Nyusi appointed him mainly because of his credentials for serving International Monetary Fund (IMF) for nearly two decades.

Specially his experience and ties with IMF are expected to bring positive impacts to the economy of Mozambique.

BOM acts as the adviser to Government in financial matters including monetary policies and foreign exchange reserves.

One of the main objective of this regulation is to ensure that all the commercial banks in the country conduct their business in an ethical and safe manner.

[18] The deposit guarantee mechanism was one of the key action taken by the bank to safeguard the savings of general public.

[18] The BOM intends to stimulate investment in small scale businesses by promoting money supply and easing rules to create affordable interest rates.

[7] As a response to the COVID-19 pandemic BOM ordered all the commercial banks to renegotiate the terms and conditions of loans to provide customers a flexibility in repayment with effect from 23 March until 31 December 2020.

Bank introduced some measures to enhance liquidity in foreign and national currency, including a credit line in the amount of US$500 million.

As a response BOM raised its key interest rate by 100 basis points to 10.75% in February 2015, in an effort to control rapidly increase inflation.

[24] Over last few years controversies has emerged around the banking systems in Mozambique including widespread corruptions and related political turmoil.

[4] Because of the looming controversies IMF has refused to grant Mozambique any new programme until further reform measures are implemented to curb corruptions.