Bank of Mozambique plans to keep close eye on inflation in 2013

31 January 2013

Mozambique’s monetary policy will continue this year to prioritise interventions in the inter-banking market in order to ensure exchange rate stability and liquidity regulation, the governor of the Bank of Mozambique, Ernesto Gove said in Pemba.

The governor said at the opening ceremony of the 37th consultative council of the central bank that these measures were ultimately intended to reduce inflationary pressure.

Consolidation of gains in macroeconomic stability and in the financial sector will continue to be the Bank of Mozambique’s main objective. Its work will therefore focus on the economic policies set by the government, which has set an annual inflation target of 7 percent, real GDP growth of 8.4 percent and an accumulation of foreign reserves to cover at least 3.8 months of imports of goods and services.

According to daily newspaper Notícias, the governor said that in order to achieve this, the central bank would use the instruments available in the monetary and foreign exchange markets, along with prudent supervision.

“Uncertainty about the end of the sovereign debt crisis in the Euro Zone requires permanent supervision to make certain that our financial system is not contaminated,” noted Gove.

The consultative council, amongst other issues, covers the central bank’s social performance, the level of execution of the 2011-2013 Strategic Plan, the main policies and activities carried out in 2012 and their results and, finally, a reflection on attraction, retaining and developing human resources within the central bank. (macauhub)