Mozambique: CTA chairman contradicts central bank governor on forex access – Watch

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Mozambique: CTA chairman contradicts central bank governor on forex access – Watch

1:38 CAT | 05 Aug 2024

The Bank of Mozambique and the CTA continue to disagree on the availability of foreign currency for exports, the CTA’s Agostinho Vuma contradicting the governor of the central bank and promising to reward anyone who obtains US$500 dollars from a commercial bank in Mozambique.

The Confederation of Economic Associations of Mozambique (CTA) last week publicly denounced the shortage of foreign currency in the market amid concerns about the possible consequences of the problem for the import of various products.

The concern was downplayed last Thursday (01-08) by the Governor of the Bank of Mozambique, Rogério Zandamela, who gave assurances that there are sufficient reserves to ensure at least five months’ of imports.

“From the central bank’s point of view, we are talking about more than five months’ of imports, which is a lot compared to what is recommended, which is three months’. Five months’ is a comfortable period,” Governor Zandamela said.

The following day, Friday 02-08, the chairman of the Confederation of Economic Associations of Mozambique, Agostinho Vuma, responded to Rogério Zandamela’s statements and issued a challenge along the following lines:

“I challenge you, journalist, to go to the bank now and ask for US$500 and then publish this news. If you get that amount, come back and take another US$500 from my pocket. We are going to present a study where we will provide detailed information on the conditions of foreign exchange, because they are creating serious problems in our import operations and it is public knowledge. I challenge you, go and get US$500 and tell me how long it will take to get it. I am talking about US$500, I am not talking about money for production,” Vuma said.

But not all the news is bad. The private sector is pleased with the reduction in the interest rate from 15% to 14.25%.

“Currently we have a higher concentration of liquidity in treasury bills at around 65%, the rate of transformation of deposits into loans at 14%, all of which are enemies of a favourable environment within the financial sector. We are here to assess that this will improve the performance of the private sector and, as I said, includes the commercial bank,” Vuma concluded, speaking on the sidelines of the second Annual Conference of Micro, Small and Medium Enterprises.

Source: O País