Between 2 and 8 January 2026, the average effective reserve requirement in local currency recorded a cumulative decline of 111 basis points, falling from 32.53% to 31.42%, according to data compiled from the Bank of Mozambique’s Market Diaries.
This change corresponds to a cumulative liquidity reduction of approximately 106.8 million dollars, with average excess liquidity balances dropping from 280.2 million dollars on 2 January to 231.5 million dollars on 8 January.
Mandatory reserves represent the amounts that commercial banks must hold deposited at the central bank, serving as a key instrument of monetary control. The decrease in the effective rate indicates lower retention of funds by banks, which may reflect higher liquidity demand for credit issuance or treasury management.
Conversely, the effective reserve requirement in foreign currency showed a slightly upward trend over the week, rising from 32.28% to 32.52%, with the liquidity deviation increasing from 70.3 million to 76.3 million dollars, an increase of 6 million dollars.
The analyzed data covers the actual operating period of the banking system between 2 and 8 January, based on the official publications of the monetary regulator.
This weekly reduction in reserves occurs within the context of broader adjustments in the financial system. In 2025, according to data released in December, commercial banks’ mandatory reserves registered a cumulative decline of around 29%, reflecting monetary easing measures adopted by the Bank of Mozambique to strengthen liquidity available in the economy.
The trend suggests that financial institutions are seeking greater flexibility of resources to meet credit and treasury management needs, at a time when the central bank continues to calibrate reserve requirements as part of its monetary policy.
Source: Diário Económico
