The metical, Mozambique’s currency, depreciated by 9.3% in one month, and now stands at 72.85 meticais against the US dollar, whilst on 15 July it was 62.85 meticais, according to Mozambican newspaper O País.
The newspaper recalled that on 12 July, 2013 one US dollar cost just 29.9 meticais and the current exchange rate, on 17 August, represents a real increase of 42.95 meticais or a decline of 58.5%.
The Bank of Mozambique has, since the end of 2015, increased benchmark interest rates on marginal lending, which currently stand at 17.25%, in order to control exchange rates and prevent the general rise in prices.
These measures do not appear to be working, with the Mozambican central bank forecasting that the first signs of improvement will appear at the end of March 2017.
The exchange rate table of the Bank of Mozambique quoted by the newspaper indicated that on 1 August one US dollar cost 69.18 meticais, which on 10 August increased to 70.07 meticais and on 15 August rose again to 72.85 meticais.
The newspaper also said the exchange rate of the metical against the rand in South Africa “is not good”, as one rand was worth 4.95 meticais on 1 August 1 and 17 days later the exchange rate rose to 5.5 meticais. (macauhub/MZ)