The bank is responsible for the supervision of all 22 commercial banks in the country by exercising it’s power as the central bank of the country . Amid growing inflation and economic liberalization BOM is facing new challenges . Mozambique's privatisation has been one of the largest in Africa. International Monetary Fund have praised recent changes made by the bank regarding its monetary policy framework as commendable measures to bring the financial stability   The headquarters is located in the capital, Maputo and two more branches are placed in Beira and Nampula . In 2018 the head quarters was shifted to a newly constructed building with 2 basements and 30 floors high and with a total building area of 25 900 m2. Mozambique is a former Portuguese colony located in Southeast Africa which had gained independence in 1975. It has a population of 30 million and covers a land area of 800, 000 km2. It is regarded as one of the poorest and most underdeveloped countries in the world. Mozambique had transformed to a country with central planned economy from an incipient industrializing colonial society after the independence. The economy is largely relied on low-productivity agriculture while manufacturing only accounts for less than 15% of GDP . 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 . Mozambique had reported a steep increase in inflation which reached 26% in November 2016. But over last few years a commendable progress has being noted as the inflation was low than 3% in 2020. Over 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 wide spread corruptions hampered the utilization of these natural resources in a productive way . Maintaining the economic stability amid fluctuations of cost of living and rapidly changing political situation are country’s main economic challenges. In that context regaining the stability through improved economic governance and transparency is the main responsibility vested on BOM. The Bank of Mozambique (BOM) was founded in 1975 following the agreement made in the Lusaka Accords in 1974. Mozambique has made significant progresses in areas of monetary stabilization and economic liberalization throughout last decade . 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.