The governor of the Bank of Mozambique, Rogério Zandamela, guaranteed this Friday (8) that the country’s foreign currency reserves are at ‘comfortable’ levels, ensuring that imports of goods and services will be covered for the next five months. Zandamela said that these reserves are not to be ‘burnt’ and that the central bank has been keeping them stable to guarantee the regular functioning of the economy, according to Lusa.
‘We’re not burning reserves and we’re not burning reserves. They are still there to allow the normal functioning of our country and our institutions,’ said the governor during the 49th consultative council of the Bank of Mozambique, held in Maputo, where he presented the medium-term economic outlook.
In recent times, Mozambican businesspeople have called on the central bank to relax the mandatory foreign currency reserve coefficients, which currently oblige banks to deposit 39.5 per cent of their total foreign currency with the central bank – a figure considerably higher than the 11.5 per cent set in 2022.
This measure aims to contain the shortage of foreign currency in the domestic market, although some sectors believe that it limits business activity.
Zandamela also emphasised that despite the challenges, Mozambique’s macroeconomic performance has shown positive signs. Gross Domestic Product (GDP) grew by 4.5 per cent in the second quarter of 2024, driven above all by the extractive industry.
In addition, annual inflation showed a decelerating trend, standing at 2.5 per cent in September, compared to 5 per cent in December 2023, a historically low figure for the country.
The governor also mentioned an improvement in the current account deficit of 14% in the first half of the year, stressing that the Mozambican banking sector remains ‘solid, well capitalised, well liquid and with high levels of profitability.’
According to him, solvency ratios stand at around 26 per cent and liquidity ratios at 49 per cent, both above regulatory levels, demonstrating the resilience of the financial system.
Zandamela concluded by saying that these favourable conditions reinforce confidence in the country’s economic stability, despite the global and domestic challenges.
