Banco de Moçambique to intervene in market to control money supply

15 July 2013

Banco de Moçambique plans to intervene in the monetary market to ensure that the circulating money supply does not exceed 42.363 billion meticais at the end of this July, indicates a statement released on Friday.

The central bank also decided to keep interest rates on the marginal lending and deposit facilities unchanged at 9.0 percent and 1.75 percent respectively, as well as the compulsory reserve ratio at 8.0 percent.

The decisions made by Banco de Moçambique’s monetary policy committee were based on the latest figures for inflation, which has slowed, reflecting not just seasonal behaviour but also the recovery of domestic fruit and vegetable production.

The decision also reflects the stability of Mozambique’s metical currency in the domestic exchange market. (macauhub)