Mozambique government plans to reduce deficit from 8% to 2.6% of GDP in three years
Mozambique: Cash in circulation rises 6.5% in a year
10:58 CAT | 25 Nov 2025
File photo: Lusa
Physical cash in circulation in Mozambique increased by 6.5% over the past year, reaching 70,149 million meticais (€946 million) in September, according to data from a central bank statistical report.
According to the document, the amount of cash in circulation in the country reached a historic high of 71,512 million meticais (€965 million) in December last year, following consecutive monthly increases since March of the previous year.
In September 2024, Mozambique had 65,936 million meticais (€891 million) in banknotes and coins in circulation. This was followed by several consecutive monthly declines, despite the introduction of a new series of the metical, Mozambique’s currency, on 16 June 2024.
The withdrawal of cash from circulation is a common practice in contractionary monetary policy, aimed at reducing the money supply, typically used by central banks to curb price increases.
Prices in Mozambique experienced further deflation in July, marking the fourth consecutive month and the eighth in 15 months, according to earlier data from the National Institute of Statistics (INE).
Meanwhile, inflation rose again, increasing by 0.47% in October—double the rise of the previous month—although the year-on-year rate fell slightly to 4.83%, according to the INE.
The accumulated inflation for 2024, based on previous INE data, stood at 4.15%, compared with 5.3% in 2023, but well below the peak of almost 13% reached in July 2022.
The Government forecasts that Mozambique will close 2025 with inflation around 7%.
Source: Lusa
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