Mozambique: International reserves falling since start of the year

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Mozambique: International reserves falling since start of the year

12:43 CAT | 19 Jun 2024

File photo: Further Africa

Mozambique’s Net International Reserves, needed for imports of goods and services, fell in April for the third month in a row to $3.586 billion ( €3.319 billion), according to data compiled by Lusa on Wednesday.

According to a statistical report from the Bank of Mozambique, these foreign currency reserves had grown by January of this year to almost US$3,601 billion (€3,332 billion), their highest value since September 2021.

However, since the beginning of the year, they have fallen by 0.5%, with slight declines every month.

Mozambique’s foreign exchange reserves are enough to cover around three months of expected import needs, a coverage that increases to almost 4.8 months when large projects are excluded, according to previous data from the central bank.

The director general of the International Monetary Fund (IMF), Kristalina Georgieva, on April 17 acknowledged the Mozambican economy’s “good performance” after a meeting with Mozambique’s President Filipe Nyusi in Washington.

“We have an active program with Mozambique and I am pleased to see that the country’s fiscal situation has strengthened. Growth is rising, inflation is falling, and reserves are strong,” she observed.

Speaking alongside the Mozambican president, with whom she talked for more than 30 minutes at the financial institution’s headquarters in the capital of the United States, Kristalina Georgieva added that the cause of this performance has been the “building of strong institutions” pursuing “good policies”.

Source: Lusa