The money supply in the Mozambican economy has fallen by 2.5% since January of this year, reflecting the continued implementation of the restrictive monetary policy adopted by the Bank of Mozambique (BdM) to curb inflationary pressures in the country.
Statistical data released by the central bank indicate that cash in circulation fell to 67.5 billion meticais in March, extending the downward trend recorded for the third consecutive month, following the peak of 74.9 billion meticais reached in December 2025.
According to the BdM report, after several consecutive months of liquidity growth between September and December, the volume of money in circulation fell to 69 billion meticais in January, maintaining a downward trend since then.
Reducing the money supply is one of the measures traditionally used by central banks to curb general price increases by limiting the liquidity available in the economy.
Despite the decline observed in the first months of this year, central bank data show that, year-over-year, the money supply in Mozambique remains above the levels recorded in the same period last year.
The tightening of liquidity comes at a time when inflation has picked up again in the country. Data recently released by the National Statistics Institute (INE) show that prices rose 0.63% in April, up from the 0.22% recorded in March, driven mainly by rising costs in the food and non-alcoholic beverages sector.
The Consumer Price Index also indicates that cumulative inflation in the first four months of the year reached 2.89%, while the year-over-year change rose to 4.41%.
Monetary authorities continue to closely monitor money supply and inflation trends amid a situation marked by pressures on the cost of living and fuel supply constraints in various regions of the country.
