Net International Reserves (NIR) fell slightly in November, for the second month running, to 3.6 billion dollars (227.5 billion meticals), but the Bank of Mozambique (BoM) guaranteed that they have the potential to cover more than five months of imports, excluding major projects.
‘The reserves are sufficient to cover 3.9 months of the estimated import needs for this year, and more than five months excluding major projects, essentially mining and natural gas,’ the central bank explained in a document.
The institution recalled that ‘these foreign currency reserves had grown in January this year to almost 3.6 billion dollars, which was then the highest figure since September 2021, and that they reached 3.8 billion dollars in July, a record in three years.’
In October reserves fell by 1%, which was repeated in November, a situation mainly influenced by transfers from banks, totalling 142.8 million dollars, but which also provided 104 million dollars. In the space of a month, reserves were also boosted by 12.5 million dollars in interest on deposits.
Recently, the BoM’s governor, Rogério Zandamela, guaranteed that the country’s foreign currency reserves are at ‘comfortable’ levels, ensuring that imports of goods and services will be covered for the next five months, emphasising that these reserves are not to be ‘burnt’ and that the central bank has been keeping them stable to guarantee the regular functioning of the economy.
‘We are not ‘burning’ reserves and we are not ‘burning’ reserves. They are still there to allow the normal functioning of our country and our institutions,’ said the governor during the 49th Consultative Council of the Bank of Mozambique, held in Maputo.
Zandamela also emphasised that, despite the challenges, Mozambique’s macroeconomic performance has shown positive signs. Gross Domestic Product grew by 4.5 per cent in the second quarter of 2024, driven mainly by the extractive industry.
