Mozambique foreign reserves guaranteeing 3.7 months of imports

26 November 2015

Mozambique has foreign reserves guaranteeing 3.7 months of imports of goods and services and the difficult economic situation facing the country “should not lead to despair,” the country’s Prime Minister said Wednesday in Maputo.

Carlos Agostinho do Rosário, responding to questions from members of parliament, stressed that the depreciation of the Mozambican currency “should not put us in a state of pessimism that leads us to panic and despair.”

Noting that the Mozambican currency had depreciated by 43 percent against the dollar since the beginning of the year until the end of October, the Prime Minister noted that the depreciation of the Mozambican currency follows the trend of currencies from around the world against the US dollar.

Since the beginning of the year, the Zambian kwacha has depreciated by 100 percent against the dollar, the kwanza in Angola by 36 percent, the Tanzanian shilling by 27 percent, the South African rand by 25%, the Brazilian real by 56 percent, the Russian ruble by 50 percent and the euro by 14 percent.

Cited by Mozambican newspaper Notícias, the prime minister also pointed to the drop in the prices of raw materials as a factor of the poor economic situation, also stressing that the current situation had aggravated the Mozambican trade deficit.

“Statistics for September 2015 showed that exports suffered an annual contraction of 9 percent in the first nine months of the year, while imports fell by just 3 percent, which means that we consume more than we produce, which drives currency depreciation,” he said.

Rosário assured MPs that the economic fundamentals of the country were stable, with price increases under control, and foreign reserves securing 3.7 months of imports and an economic growth forecast this year of 6.3 percent, above average in southern Africa.” (macauhub/MZ)