Mandatory reserves of commercial banks registered a cumulative decline of 29% throughout 2025, reflecting the monetary easing measures adopted by the Bank of Mozambique (BdM) in an effort to strengthen the liquidity of the national financial system, according to Lusa.
According to updated data, the volume of bank reserves held at the central bank fell in September to 207.1 billion meticais ($2.8 billion), reaching its lowest level in more than six months. At the end of 2024, reserves stood at 291.5 billion meticais ($3.9 billion), marking a peak before the decision to relax the mandatory reserve ratios.
The decline followed the Monetary Policy Committee (CPMO) decision in January to reduce the mandatory reserve ratios from 39% to 29% in local currency, and from 39.5% to 29.5% in foreign currency, after months of pressure from the private sector regarding the scarcity of foreign exchange in the market. The CPMO explained that the measure aimed to “make more liquidity available to support the economy in restoring productive capacity and the supply of goods and services.”
The measure was well received by businesses, particularly in the importing and productive sectors, which faced difficulties accessing foreign currency essential for sustaining operations and investments.
BdM Governor Rogério Zandamela stated in March that liquidity levels, particularly in foreign currency, had become “sufficient” after the revision of the ratios, ruling out further changes in the short term. Subsequent CPMO decisions confirmed this stance, keeping the indicators unchanged. Between December 2022 and the end of 2024, mandatory reserves had increased by nearly 400%, driven by inflation containment policies and liquidity management. Now, with economic recovery still moderate and persistent foreign exchange challenges, the central bank is focusing on balancing monetary discipline with support for productive activity.
Source: Diário Económico
