Foreign currency transactions between banks fell sharply by 67% in 2024, totaling $44.4 million (2.8 billion meticais), compared to $135.1 million (8.6 billion meticais) traded through this channel in 2023.
According to the annual report from the Bank of Mozambique (BdM), the institution did not sell any foreign currency on the interbank market in 2024, in contrast to 2023, when it sold $481.4 million (30.7 billion meticais), including various foreign currencies converted into US dollars.
Meanwhile, in the same year, commercial banks purchased more foreign currency from their clients than they sold, amounting to $880.1 million (56.2 billion meticais). Purchases fell by around 4% compared to 2023, while sales dropped 17%. The total volume of interbank trading stood at $15.8 million (1 billion meticais), representing operations exclusively between banks — not including client transactions or direct interventions by the central bank. This figure reflects the strictly interbank segment, consistent with the data provided in the BdM’s report.
The Governor of the Bank of Mozambique, Rogério Zandamela, stated that the country experienced a “dollarization” process at the end of 2024, driven by a climate of political and economic uncertainty following the 2024 general elections. He specifically highlighted December and January as the most critical periods, during which there was a mass attempt to withdraw foreign currency from banks. Zandamela explained that public confidence was shaken, with many citizens seeking to convert their assets into dollars or leave the country, and confirmed that the banking sector came under intense pressure — although it played a stabilizing role due to its knowledge of its customer base.
The report emphasizes that the Bank of Mozambique remained neutral in the interbank foreign exchange market despite the domestic instability, contributing to some degree of exchange rate stability.
Source: Lusa
