IMF mission arrives in Mozambique

16 June 2016

A team from the International Monetary Fund (IMF) arrived Wednesday in Maputo to try to solve the Mozambican sovereign debt crisis.

The IMF cancelled a previous mission scheduled for April after the Mozambican authorities confirmed undisclosed loans taken on by state companies with the support of the government. The IMF also suspended the pay out of US$165 million, the second tranche of an emergency loan totalling US$286 million.

On Wednesday Mozambique’s currency, the metical, fell by 10 percent to a record of 66 meticais per US dollar. This drop will add more pressure to inflations, which currently stands at around 18.3 percent against the same month of last year and 8.6 percent in annual terms.

The Bank of Mozambique, in its report on the meeting of the Monetary Policy Committee, said the exchange rate against the dollar on the last day of May – 68.22 meticais – meant that the value of Mozambique’s currency had fallen by 9.42 percent in monthly terms and 68.61 percent in annual terms. (macauhub/MZ)