The Bank of Mozambique (BdM) stated that it is the Government’s responsibility to find a solution for the outstanding balances related to exchange rate fluctuations, which have totaled 115.4 billion meticais ($1.8 billion) since 2005. The responsibility for issuing the bonds needed to settle this debt does not lie with the central bank, said Governor Rogério Zandamela following a recent Monetary Policy Committee (CPMO) meeting held in Maputo.
According to an independent audit conducted by Forvis Mazars, the exchange rate fluctuation balances have not been assumed by the State since 2005, accumulating to 115.4 billion meticais ($1.8 billion). The audit also revealed that the Bank of Mozambique did not record in its financial statements the interest and income associated with this debt, amounting to an additional 27.6 billion meticais ($437.5 million).
The governor reiterated that these matters fall within the Government’s scope, stressing: “It is not up to us to decide” on the issuance of bonds for this purpose, “nor on how the problem will be resolved.” In 2024, the Bank of Mozambique recorded a loss of 4.1 billion meticais ($65.6 million), reversing the profits initially reported for the previous year, which were also revised downward. This contrasts with profits of 886.2 million meticais ($14 million) in 2023, later adjusted to 1.4 billion meticais ($23.5 million).
The bank’s report highlights an anomaly identified in its IT system related to the accounting of exchange rate variations in term deposits and overnight operations from previous years up to 2023. This adjustment triggered a retrospective restatement of the 2023 results. By the end of 2024, the Bank of Mozambique’s total assets had increased to 759.2 billion meticais ($12 billion), while liabilities stood at 754.1 billion meticais ($11.9 billion), resulting in equity of 5 billion meticais ($80.2 million).
This financial picture highlights the challenges faced by the Bank of Mozambique and underscores the need for a government response to resolve the overdue exchange rate balances, which impact the financial stability of both the institution and the country.
Source: Lusa
