Mozambican metical continues recovery in December

27 December 2005

Maputo, Mozambique, 27 Dec – Mozambique’s national currency, the metical, continued to rise in value against the American dollar and South African rand during the first half of December, Maputo’s central bank has said.

In its latest financial report released Monday, the Bank of Mozambique (BM) said the metical gained 8.5 percent against the dollar in the first two weeks of December. Similar gains were made against the rand (5.7 percent) and the euro (6.7 percent), added the bank.

Mozambique’s central bank said it had reversed an earlier slide in the metical’s value against other currencies by offloading foreign reserves.

The Maputo government blamed the depreciation of the metical on rising costs of imported fuel, which in turn obliged banks in the country to acquire large amounts of foreign currency to allow companies to buy oil. (macauhub)