Mozambique’s Net International Reserves rose to $3.740 billion in December, the highest since September, after a decline. This recovery is critical for supporting international payments. Governor Rogério Zandamela confirmed that reserves would be maintained and that recent adjustments in reserve requirements aim to promote economic liquidity.
Mozambique’s Net International Reserves (NIR) increased in December, rising to $3.740 billion (€3.453 billion), the highest level since September. This growth follows two consecutive months of declines, as reported by the country’s central bank. Prior to this, reserves had decreased to €3.682 billion, but experienced a recovery of 1.5% in December.
By the end of September, Mozambique’s NIR totaled $3.762 billion, sufficient to cover approximately three months of import requirements. These reserves support international payments for goods and services. As of January 2024, reserves again increased, reaching nearly €3.601 billion, marking the highest level since September 2021.
The Bank of Mozambique’s governor, Rogério Zandamela, emphasized the importance of maintaining adequate foreign currency reserves, stating that they would not be depleted unwisely. In light of domestic foreign currency shortages, businesses have urged the central bank to relax mandatory foreign currency reserve requirements, which had risen to 39.5% of total deposits compared to just 11.5% in 2022.
On January 27, the Bank of Mozambique’s Monetary Policy Committee decided to reduce the mandatory reserve requirements to 29.00% for national currency and 29.50% for foreign currency. This adjustment aims to enhance liquidity in the economy, thereby restoring productive capacity and improving the supply of goods and services.
In summary, Mozambique’s Net International Reserves showed promising growth in December, following months of decline. The increase highlights the central bank’s efforts to stabilize the economy and maintain liquidity. Through prudent management of these reserves and adjustments to mandatory reserve requirements, Mozambique aims to enhance its economic recovery and ensure businesses can operate effectively.
Original Source: clubofmozambique.com
