Bank of Mozambique announces increased sales of foreign currency to the market

15 September 2015

The Bank of Mozambique will increase the sale of foreign currency in order to ease pressure on the foreign exchange market, according to a statement published Monday in Maputo announcing the main decisions of the Monetary Policy Committee.

Provisional data released by the central bank showed that foreign net reserves on last August suffered decreased by US$73.2 million, made up of the sale to commercial banks of US$96.1 million, foreign exchange losses of US$29.4 million and official payments abroad worth US$16.4 million dollars.

At the end of the month, the balance of foreign reserves corresponded to 3.76 months of coverage of imports of goods and services, excluding operations of major projects.

The Monetary Policy Committee decided, after considering the risks to the economy, to keep the interest rate on the marginal lending facility at 7.5 percent, the permanent deposit facility at 1.5 percent and also keep reserve requirements at 8 percent.

The Committee also decided to scale up interventions in the interbank market to ensure that the money supply does not exceed approximately 62 billion meticais in September.

In August the average nominal interest rate charged by credit institutions in their lending operations for one-year maturity stood at 18.06 percent in July, an annual increase of 67 basis points. (macauhub/MZ)