9% devaluation in one month, 44% since mid-January – Metical

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9% devaluation in one month, 44% since mid-January – Metical

8:31 CAT | 11 Jul 2016

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The Metical fell 9% against the US dollar in the past month and 44% since mid-January; there are now 64.32 Meticais to the US $. This is important because most debt is denominated in dollars. But the South African Rand is more important in Maputo because much food and many consumer goods are imported from South Africa. There are now 4.23 Meticais to the Rand, compared to 4.02 just a month ago and 2.68 in mid-January; the devaluation in the past month has been 5%. (There is a table in the attached pdf.)

Maputo city stopped bakers from raising the price of bread on 1 July. In October last year the price of a 250 gram loaf went up from 6 to 7.5 meticais (then $0.15 and $0.19). Under the most recent proposal, this size of loaf would cost 9 meticais (now $0.14). But this was blocked. (AIM En 5 July).

By: Robert Hanlon

Source: News reports & clippings