Bank of Mozambique raises reserve requirement ratio in foreign currency

7 March 2019

The reserve requirement ratio in foreign currency in Mozambique has increased by nine percentage points to 36%, with effect from 7 March, the Bank of Mozambique reported.

The statement on the decisions of the 6 March meeting of the Monetary Policy Commission said this measure is based on new information pointing to a worsening perception of external risks and consequent volatility of the dollar on the international market, compared the evaluation made at the previous meeting.

The members of the committee also decided to keep the monetary policy interest rate, the MIMO rate, unchanged at 14.25%, as well as the rates on the deposit facility and liquidity facility at 11.25% and 17.25%, respectively.

The reserve requirement ratio in Mozambican currency was also kept at 14.0%.

The statement said that the decision to leave the MIMO rate unchanged was due to the fact that inflation remains low and stable, with the forecast for the short and medium term being around one digit until the end of the year. (Macauhub)