The Bank of Mozambique (BdM) announced on Thursday, July 31, new measures aimed at boosting liquidity in the national foreign exchange market, by redistributing liquidity more effectively within the financial system. This comes at a time when several economic sectors are still struggling to access foreign currency for imports, according to news agency Lusa.
According to the central bank governor, Rogério Zandamela, the ongoing actions are designed to “adjust” the functioning of the forex market without changing the overall amount of liquidity in the system. “These measures are nothing more than adjusting certain resources,” he said during a press conference at the end of the Monetary Policy Committee (CPMO) meeting in Maputo.
Key Measures Include:
- Reducing the daily retention limits of foreign currency acquired by commercial banks;
- Raising the minimum mandatory conversion rate of export revenues from 30% to 50%.
This latter measure, Zandamela explained, will help increase the availability of foreign currency on the market and facilitate economic operators’ transactions. For instance, for every $1,000 (63,000 meticais) in export revenues, banks will now be required to convert at least $500 (31,500 meticais) into local currency, compared to the previous $300 (18,900 meticais) — thereby strengthening domestic forex supply.
When asked about the persistent difficulties in accessing foreign currency, Zandamela emphasized that the issue does not stem from a shortage of foreign exchange overall, but from how it is distributed across different sectors. “These measures we’re implementing don’t affect the total amount, but rather how that liquidity is distributed throughout the segments of our system,” he clarified.
Presidential Criticism and Private Sector Concerns
Recently, President Daniel Chapo criticized the behavior of some commercial banks, accusing them of artificially creating scarcity of foreign currency to profit through speculation. “When there is a shortage of foreign currency, the situation is turned into a business opportunity. There is no real shortage,” Chapo said on July 15, during a meeting with businesspeople in Sofala Province.
At the same event, the president called on the Bank of Mozambique to adopt a “transparent forex policy”, ensuring equitable access to foreign currency for entrepreneurs. He also criticized the alleged prioritization of forex allocation for dividends or salaries in the financial sector, at the expense of essential imports.
Back in February, the Confederation of Economic Associations (CTA) warned of the impact of forex restrictions on key sectors like health, aviation, fuel, and food products. These concerns were echoed again by entrepreneurs during the meeting with the president.
Reserves at Highest Level in Four Years
Despite these pressures, Mozambique’s Net International Reserves (NIR) reached their highest level in four years in May, totaling $3.8 billion (240.1 billion meticais) — enough to cover more than three months of estimated import needs, according to central bank data.
Reserves consistently recovered over three consecutive months:
- In March, they grew 1% to 227.2 billion meticais ($3.6 billion);
- In April, 4.3%;
- And in May, an additional 1.5% — reinforcing the country’s capacity to absorb external shocks and respond to domestic demand for foreign exchange.
Source: Diário Económico
