Mozambique FinMin blames devaluation of currency on fuel imports

25 November 2005

Maputo, Mozambique, 25 Nov – Mozambique’s Finance Minister, Manuel Chang, rejected the idea of administrative setting of exchange rates and argued that the recent devaluation of the Mozambique currency, the metical, was due to the increased price of oil imports.

Figures from the Bank of Mozambique show that the value of the metical against the US dollar has fallen from 26,500 at the beginning of November to 29,000 on November 17, despite having recovered since then.

Addressing the Mozambican parliament, Chang said that the fall of the metical in the first half of November was due to banks that finance the acquisition of fuel buying large quantities of foreign currency, which had put pressure on the metical.

He assured the parliament that in future only banks with sufficient foreign cash reserves could be part of the banking syndicate that finances fuel imports.

In the next six months some USD 180 million will be needed to finance Mozambican fuel imports, Chang said. (macauhub)