Devaluation of Mozambique’s currency is due to economic factors, central bank says

23 November 2015

The sharp devaluation of the metical against the US dollar is the result of cyclical factors and not of the high value of loans contracted for the implementation of some public works, said Friday in Maputo the Governor of the Bank of Mozambique.

Ernesto Gove, who was speaking during a National Conference on Public Debt, focused on factors of an external and internal nature and denied that works such as construction of the Maputo ring road and the Maputo/Catembe bridge as well as setting up tuna company Ematum were the reasons for the sharp devaluation of the national currency.

The governor noted that the dollar had been rising in value globally, reaching worrying levels not only against the metical but also significantly against the Russian ruble, the Brazilian real and some currencies in Southern Africa, according to Mozambican daily newspaper Notícias.

The issue of debt taken on for large construction projects was also addressed by the Minister of Economy and Finance, Adriano Maleiane, for whom the loans granted for construction of the Maputo ring road, the Maputo/Catembe bridge and even the for setting up Ematum were an option that the government considered convenient.

Maleiane said that the Maputo/Catembe bridge would make it possible to link the road between the north and south of the country, and would also provide an uninterrupted route from Durban, South Africa to Cairo, Egypt. (macauhub/MZ)