Mozambique’s net international reserves (NIR) retreated to $3.4 billion in July, extending a downward trend and reaching their lowest level in more than a year, according to data published by the Bank of Mozambique (BdM).
The central bank’s latest Monthly Statistical Information Summary shows that reserves declined by approximately $27 million from the $3.4 billion recorded in June. This marks the second consecutive month of decline, following a reading of $3 billion in May.
During July, inflows into the international reserves totalled approximately $213 million, while outflows reached $261.7 million, producing a net negative flow of around $27 million. The principal inflows recorded during the month included $119.4 million from bank provisioning, $57.8 million in miscellaneous receipts, and $16.9 million in various purchases.
On the outflows side, bank transfers absorbed $112.8 million, while other state-related operations accounted for $70.4 million. A further $40.3 million was recorded under miscellaneous outflows. At the current level, the international reserves cover approximately 2.8 months of the country’s total imports. Excluding the import requirements of large-scale projects, coverage rises to approximately 4.3 months. International reserves represent external assets — primarily in foreign currency — managed by the Bank of Mozambique and are used, among other purposes, to service external payments and cover import requirements.
The recent trajectory reflects a sharp reduction from the start of the year. NIR reached $4.2 billion in February before falling to $3.486 billion in March and $3.4 billion in April. In May, reserves recovered slightly to $3.5 billion, before declining again to $3.464 billion in June and $3.4 billion in July. Between February and July, Mozambique’s net international reserves contracted by approximately $821 million.
Part of this reduction followed the government’s decision to draw on international reserves to make an early repayment of financing obtained from the International Monetary Fund. In March, Mozambique made a full and early repayment of approximately $698.6 million in loans contracted under the IMF’s Poverty Reduction and Growth Facility. Prior to that transaction, reserves had reached their highest level in the recent series in February, at $4.258 billion.
At the time, then-Bank of Mozambique Governor Rogério Zandamela dismissed concerns that deploying reserves to repay the IMF had weakened the institution’s financial position. “The Bank of Mozambique did not become weaker, more fragile, or more vulnerable because of this decision. I would even say the opposite,” Zandamela stated, arguing that the country remained in a comfortable position in terms of reserves.
President Daniel Chapo also described the decision to settle the IMF debt ahead of schedule as “courageous”, characterising the move as a signal of macroeconomic responsibility.
The decline in reserves comes against a backdrop of continued private sector concern over difficulties in accessing foreign exchange to finance imports. The Confederation of Economic Associations of Mozambique has warned that the scarcity of foreign currency is constraining the importation of raw materials, the fulfilment of contracts, and business expansion.
CTA President Álvaro Massingue went as far as describing the situation as an “economic emergency”, arguing that the shortage of foreign exchange is limiting the operational capacity of numerous companies. The government has previously acknowledged concerns related to foreign currency availability and indicated that it is working with the financial system to ensure the supply of foreign exchange, primarily for the payment of fuel, foodstuffs, and medicines.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/14/economia/bdm-reservas-internacionais-diminuir-para-34-mm/
