Mozambique’s international reserves drop 1% in September after August peak

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Mozambique’s international reserves drop 1% in September after August peak

12:24 CAT | 24 Nov 2025

File photo: Lusa

Mozambique’s Net International Reserves (NIR) fell by 1% in September, to US$3,937 million, following four-year highs in August, according to central bank data obtained by Lusa.

These reserves — foreign currency holdings — had recorded their lowest value in about a year in February, falling to US$3,593 million, according to the historical data from a statistical report by the Bank of Mozambique.

This was followed by six consecutive monthly increases, reaching US$3,995 million in July and renewing record highs in August of US$4,035 million, covering more than three months of estimated import needs for goods and services, before this decline in September.

The central bank governor, Rogério Zandamela, announced on 31 July that the institution was adopting measures to increase liquidity in the foreign exchange market, attempting to redistribute the volume of available foreign currency to guarantee imports.

“These measures are simply about adjusting here and there, taking certain resources from one place and putting them in another, and better monitoring,” explained the governor at a press conference in Maputo, following a meeting of the Monetary Policy Committee (CPMO).

“An increase in liquidity in the foreign exchange market is anticipated. To boost public sales, the Bank of Mozambique recently reduced the daily retention limits on foreign currency acquired by banks. This measure complements the decision to increase the minimum conversion rate of export revenues from 30% to 50%, which implies greater availability and access to foreign currency,” he added, referring to the meeting’s conclusions.

Responding to journalists after the announcement, considering business concerns over lack of access to foreign currency—particularly to secure imports—Zandamela pointed out that “there was a need to adjust certain liquidity segments”.

The Mozambican President, Daniel Chapo, accused the banking sector in July of creating a foreign currency shortage and turning it into a “business opportunity”, warning that foreign currency was never lacking for dividend distribution.

“When there is a shortage of foreign currency, that shortage begins to be turned into a business opportunity. This even happens in commercial banks, where you do business every day. There is no real shortage [of foreign currency], it is a created shortage,” said Daniel Chapo on 15 July at a meeting with local entrepreneurs in Sofala province, central Mozambique.

The Confederation of Economic Associations (CTA) of Mozambique, the country’s largest business association, has insisted that the lack of access to foreign currency at banks is affecting operations, particularly in the health, aviation, fuel, and food import sectors.

Source: Lusa