Mozambican currency falls 8.73 pct against US dollar in 2012

20 February 2013

The value of Mozambique’s currency, the metical, in 2012 fell 8.73 percent against the US dollar after falling by 2.68 percent in the fourth quarter alone, due to great demand for foreign currency in the interbank market, said the Bank of Mozambique.

In a document entitled Economic Outlook and Inflation Prospects, the Mozambican central bank said that the rise of the US dollar on international markets had also contributed to depreciation of the metical.

On the interbank exchange market, the Bank of Mozambique was a net seller of currency in the fourth quarter of 2012 following sales to retail banks totalling US$187.5 million, of which US$138.5 million to cover the costs of importing fuel.

In the same period, foreign reserves dropped by US$41.6 million, ending 2012 with a total of US$2.656 billion, or the equivalent of 5.84 months of imports of goods and services, essentially due to net sales of currency, payments made by the State in foreign currency and net foreign exchange losses.

Despite this, the total exceeded the target set for 2012 by around US$126.2 million, noted the document cited by Mozambican news agency AIM.

The Bank of Mozambique noted that despite an unfavourable international climate, the Mozambican economy continues to show robust economic performance, particularly in the agriculture, mining, transport and communications sectors. (macauhub)