Mozambique: Central Bank injects US$25 million to maintain stability of local currency

11 December 2008

Maputo, Mozambique, 11 Dec – The Bank of Mozambique in October and November provided cash to the market totalling US$25 million in order to maintain the stability of the country’s currency, the metical, the bank said.

As a result of the bank’s decision, the US dollar in the period was bought for an average of 24.59 meticais, which was a month on month depreciation of the Mozambican currency of just 0.1 percent.

In the statement the Bank of Mozambique noted that it Monetary Policy Committee had recently met in Maputo to assess economic and financial progress not only in of Mozambique, but also on a regional and international level, in the months of October and November.

The central bank noted that the most recent developments in teh inetrantional financial climate confirmed signs of economic recession in the Euro Zone and Japan, as a result of the financial market crisis taht began in the United States.

In relation to countries in the Southern African Development Community (SADC), the Bank of Mozambique noted inflationary deceleration in South Africa and Botswana. (macauhub)