Term deposits in Mozambique’s banking system contracted 2% in June 2026 compared with the previous month, settling at approximately €4 billion, according to Bank of Mozambique (BdM) data reviewed by Diário Económico.
Central bank statistics show the figure compares with roughly €4 billion recorded in May, representing a monthly decline of 2%. On an annual basis, term deposits fell 3.3% relative to the approximately €4.1 billion registered in June 2025.
Term deposits entered 2026 at around €4.13 billion in January before retreating in February and March. A partial recovery was recorded in April, but deposits fell again in both May and June.
The all-time high for term deposits remains at approximately €4.14 billion, reached in July 2025.
Moving in the opposite direction, demand deposits rose again in June, climbing to approximately €7.04 billion from €6.7 billion in May. In the same month of 2025, demand deposits stood at around €6.1 billion.
In aggregate, total banking deposits increased to approximately €11 billion in June, up from €10.8 billion the previous month. The growth in demand deposits was sufficient to offset the contraction in term deposits.
These developments come against the backdrop of Mozambique’s benchmark lending rate holding steady at 15.5% in August — unchanged for the fourth consecutive month — following three rate cuts carried out earlier in the year.
The decision mirrored the Bank of Mozambique’s maintenance of its MIMO policy rate. The central bank attributed the move to reduced liquidity in domestic currency within the banking system, linked to an increase in the mandatory reserve coefficient, even as risks and uncertainties surrounding the inflation outlook persist.
Mozambique currently has 15 commercial banks and 12 microbanks in operation, alongside credit cooperatives and other institutions involved in savings and lending.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=534060
