Mozambique meets criteria to join SADC single central bank

4 January 2010

Maputo, Mozambique, 4 Jan – Mozambique meets the criteria for joining the single central bank to be established in the next few years by the Southern African Development Community (SADC), the Notícias newspaper reported on Monday in Maputo.

To achieve that goal all member countries are required to have a single-digit annual inflation rate and to lower their level of public debt with respect to Gross Domestic Product (GDP).
The governor of the Bank of Mozambique, Ernesto Gove, recently said the SADC countries were enjoying a general trend of stability with single-digit inflation, low interest rates and inverted behaviour of the different currencies with respect to the US dollar, especially the rand, which had gained 27 percent by last November.
Gove nevertheless admitted that the region is still influenced by events that hinder efforts to optimise its potential for high levels of production and wealth.
The region’s strategic goals require huge investments, which will only arrive in the longed-for amounts when governments and economic players operating in the region are more united, bold and capable, he said.
The SADC countries’ central banks are preparing their basic laws, Gove said, adding that the respective law’s model had been submitted to the finance ministers’ group for consideration, so that it can issue an opinion before same is submitted at head of state level.

Based on what is still the draft model, Mozambican authorities are currently working to adjust the basic law of the Bank of Mozambique to the SADC model. (macauhub)