The Bank of Mozambique has lowered it projections for the country’s rate of inflation this year, noting that valuation of the national currency and high interest rates would end up offsetting price rises.
The rate of inflation is thus expected, at the end of the year, to stand at 4 percent as compared to a projection in January of 5.6 percent.
The metical, Mozambique’s national currency, has seen significant appreciation against the US dollar and this contributed to inflation, which last year was over two digits, falling to 3.37 percent in April due to the impact on the price of imported products.
The Mozambican central bank said that foreign direct investment (FDI) had totalled US$2.1 billion in 2011 as a result of mining. (macauhub)