Mozambican currency reverses slide against dollar and rand

21 December 2005

Maputo, Mozambique, 21 Dec – Intervention by Mozambique’s central bank at the end of November was successful in halting depreciation of the metical against the South African rand and United State dollar, according to an official report published Wednesday.

In its latest report, the Bank of Mozambique said the metical gained 5.7 percent against the dollar in the second half of November and rose 1.9 percent and 1.8 percent respectively against the rand and euro in the same period – reversing successive slides against major currencies seen for the past six months.

The fall in the value of the metical was due to increasing costs of imported fuel, which led to accumulation of foreign currency, according to the Maputo government.

Mozambique’s central bank sold US$ 31 million during the last two weeks of November, reducing the country’s foreign reserves by US$ 26.5 million to US$ 901.3 million. (macauhub)