Financial operations between the Mozambican economy and the rest of the world in the first quarter of 2024 resulted in a net inflow of funds totalling 926.7 million dollars, compared to 894.6 million dollars in the same period in 2023. This is an increase of 3.6 per cent in the flow of operations.
According to the data contained in the quarterly Balance of Payments (BoP) bulletin, recently released by the BoM, the evolution recorded in the financial account was determined by the combined effect of the 68.1 per cent increase in financial flows in the Other Investment category to 279.2 million dollars, in a context in which the inflow of Foreign Direct Investment (FDI) fell by 10.6 per cent.
“Excluding Major Projects (GP), the balance of the financial account stood at almost 1.7 billion dollars, which represents a 15.6 per cent increase in net inflows of financial resources,” the document notes.
Analysing financial flows by instrument, the BoM report points out that Foreign Direct Investment in Mozambique (FDI) saw a 10.6% slowdown in net inflows, due to the 25.9% reduction in investments in the extractive industry, especially in Major Projects (GP).
Meanwhile, the document points out that in the light of the above, economic transactions between Mozambique and the rest of the world resulted in an overall surplus of 174.6 million dollars, which contributed to an increase in the monetary authority’s reserve assets, with the balance of gross international reserves standing at 3.6 billion dollars, enough to cover 3.1 and 4.8 months of imports of goods and services, including and excluding GP respectively.
