The Bank of Mozambique has fulfilled its mission of consolidating the stability of the country’s macroeconomic and financial system, despite the particularly complex economic, political and social scenario, both domestically and internationally, the governor of the central bank said.
Rogério Zandamela, speaking at the opening session of the bank’s 44th Advisory Council, said tropical cyclones Idai and Kenneth reduced the supply of goods and services and caused massive human damage, while elections, in the new format, entailed greater spending by the state, the state budget and its own management.
The list of challenges also included instability in Cabo Delgado province and the outbreaks of violence in Manica and Sofala.
The governor of the Mozambican issuing bank also mentioned the signing of the peace agreement, the announcement of the final decision to invest in the Rovuma basin Area 1 natural gas project and the disbursement of US$118 million by the International Monetary Fund (IMF) in direct support to the State Budget.
Mentioning the results achieved, Zandamela noted the drop in the inflation rate to 2.0%, the substantial increase in foreign reserves to almost six months of imports, the stability of the exchange rate between 60 and 63 meticais for every dollar and the improvement of the financial inclusion indicators.
With regard to monetary policy, the governor highlighted the reduction of the basic reference rate from 15% to 12.75%, which helped to reduce the interest rate that banks charge their customers, from 20.20% to 18%. (Macauhub)