Bank of Mozambique calls for increased production to stabilise currency

12 January 2016

The Governor of the Bank of Mozambique has called for increased production and consequent reduction of imports as key measures to stabilise the country’s currency against other currencies, particularly the dollar and the euro.

Ernesto Gove, cited by Rádio Moçambique, noted the importance of improving the business climate to drive investment, production, productivity and employment.

The governor also spoke of the importance of channeling savings into banks as a way of strengthening the Mozambican economy, given that the vast majority of the population does not have a bank account.

Official data released in December 2015 showed that the Mozambican currency had devalued by 43 percent against the dollar between January and October 2015.

Another consequence of the devaluation of the currency is the rise in prices of imported products, and the National Institute of Statistics reported Friday that inflation in 2015 stood at 10.55 percent, the highest rise in prices registered in the last five years.

In December annual inflation (December 2015 against December 2014) reached 4.76 percent, which compares with 1.93 percent a year earlier and representing a real increase of 2.83 percentage points or percentage increase of 146 percent. (macauhub/MZ)