Volume 9, Issue 5, September 2020, Page: 210-218
The Impact of Electronic Clearing on Currency in Circulation in Mozambique
Samuel Garicai Arone, Department of Sciences and Technology, Open University, Lisbon, Portugal
Received: Aug. 21, 2020;       Accepted: Sep. 8, 2020;       Published: Sep. 21, 2020
DOI: 10.11648/j.ajtas.20200905.14      View  42      Downloads  28
Similar to the experience of other countries, payment habits in Mozambique have been changing. Indeed, innovations in transaction technology such as electronic payments have revolutionized the payment landscape in the economies. Although, in general, cash has remained the dominant payment instrument, it is important to analyze the extent to which its course has been influenced by several alternative payment instruments used in the intermediation of commercial transactions. Among the alternative payment instruments, this paper examines the impact of some of the components of interbank electronic clearing subsystem, namely interbank cheques clearing and interbank electronic funds transfer, on currency in circulation in Mozambique, using monthly data between 2010 and 2019. Preliminary analysis of the data revealed a decreasing trend in interbank cheques clearing against an increase in interbank electronic funds transfer, which is in line with the trends registered in some countries referenced in this paper. A Vector Error Correction Model was used based on the cointegration behavior of the variables used. The empirical results suggested that, interbank cheques clearing substitute currency while interbank electronic funds transfer complement it. Thus, this allows us to conclude that, generally, the beneficiaries of interbank electronic funds transfer convert funds ordered into cash, whereas the beneficiaries of cheques transacted via interbank clearing prefer to keep funds into deposits. However, the statistical significance of the latter was tenuous.
Cointegration, Cheques Clearing, Currency in Circulation, Interbank Funds Transfer, Vector Error Correction Model
To cite this article
Samuel Garicai Arone, The Impact of Electronic Clearing on Currency in Circulation in Mozambique, American Journal of Theoretical and Applied Statistics. Vol. 9, No. 5, 2020, pp. 210-218. doi: 10.11648/j.ajtas.20200905.14
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This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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