The Bank of Mozambique (BdM) said that reserves held by Mozambican banks stood at 254.2 billion meticais in April, representing a reduction of 0.3% compared to March, when they stood at 255.1 billion meticais.
According to a statistical report from the institution, the obligatory reserves of commercial banks were set at 10.5% in national currency and 11% in foreign currency at the beginning of January 2023.
However, the document explained that in the first six months of last year, the Bank of Mozambique increased this coefficient twice, arguing that it was necessary to “absorb excessive liquidity in the banking system, with the potential to generate inflationary pressure”.
“The last of these increases took place in June, with 39 per cent of deposits in national currency and 39.5 per cent in the case of foreign currency remaining in bank reserves,” said the central bank.
Following this increase, the Confederation of Economic Associations of Mozambique (CTA) considered that the decision made it even more expensive to take out bank finance, an essential mechanism in an economy of small and medium-sized enterprises.
