IMF representative in Mozambique praises measures to solve crisis

16 May 2018

The macroeconomic policies adopted by the Mozambican government produced positive results in 2017, with the national currency, the metical, appreciating against the dollar, said the representative of the International Monetary Fund (IMF) in Mozambique, quoted by Mozambican newspaper Notícias.

Ari Aisen also said that the country’s external accounts have improved due to falling imports and resumption of exports, reinforced by increased production and prices of coal, aluminium and other traditional export products from Mozambique.

During a lecture entitled “The economic scenario in Mozambique – beyond statistics and economic policies,” organised by the Pedagogical University, Aisen said that the Bank of Mozambique had taken advantage of the improvements seen in 2017 and added over US$1 billion to its international reserves, which covers more than seven months of imports, excluding those related to large projects.

“Another piece of good news was inflation, which, having reached a peak of 25% a year, fell to less than 4.0% per year, which protects the purchasing power of Mozambican households,” said the IMF representative in Mozambique.

The measures adopted were able to respond to shocks that occurred simultaneously in a short time and in the same year – 2016 – and which hit the Mozambican economy at a time when macroeconomic policies were not designed to deal with such a situation, Aisen also said. (macauhub)