Mozambique: US dollar starts rising against the metical – Carta

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Mozambique: US dollar starts rising against the metical – Carta

2:26 CAT | 12 May 2021

File photo: Lusa

The appreciation of the national currency, the metical, may have been short-lived. A United States dollar (USD) now costs almost 60.00 meticais, up from 55.00 meticais.

Over months – March and April – the national currency appreciated from 75.00 to 54.00 meticais to the dollar. Since late April, however, the trend has reversed.

The US dollar has been rising in value, albeit at a slow pace. Specifically, 1.00 US dollar costs 58.00 meticais to buy (59.00 meticais to sell), according to the Bank of Mozambique exchange rate.

The metical’s depreciation trend is also paralleled in relation to the Euro and the rand. One Euro now costs 70.00 meticais, against the previous 66.00, and one rand costs 4.00 meticais, against the previous 3.80.

Although the appreciation of the metical was, to a certain extent, beneficial for the national economy, in the last few days the situation has tended to reverse itself. A forecast issued made recently by Fitch Solutions, an international financial rating institution, indicate that the national currency may depreciate further and fall to 74.00 meticais to the US dollar by the end of the year.

By Evaristo Chilingue

Source: Carta de Moçambique