Bank of Mozambique takes steps to control inflation in 2017

22 December 2016

The Bank of Mozambique will continue to implement measures to bring inflation down to the set target of 14 percent in 2017, with economic growth of around 5.5 percent, the head of the central bank said in comments regarding the closing of financial year 2016.

Inflation currently stands at around 27 percent. The central bank has forecasted a downward trend that will continue in 2017, owing to monetary policy measures implemented by the institution.

Those monetary policy measures will enable the Bank of Mozambique to constitute international reserves of US$ 1.760 billion, enough to cover 3.5 months of goods and services imports, excluding major projects.

The head of the central bank, Rogério Zandamela, quoted by AIM news agency, said that the metical exchange rate has been more stable and is tending to appreciate. The US dollar was worth about 72 meticais until 16 December, a nominal appreciation of 9 percent compared to the highest value recorded.

“Accumulated depreciation has eased substantially to 54 percent,” he added.

Zandamela explained that beyond strengthening coordination of monetary and fiscal policies, he would continue working to improve the domestic and international reputation and credibility of the country and its institutions. (Macauhub)