Exchange rate stabilises at $1 = MT 60

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Exchange rate stabilises at $1 = MT 60

8:08 CAT | 08 Jan 2018

In 2014 the exchange rate was $1 = MT 30, but the 2016 secret debt crisis led to a rapid devaluation, with the exchange hitting $1 = MT 78 in October 2016. The Metical recovered somewhat, appreciating to $1 = MT 60 by June 2017 and remained close to that through the second half of the year. In many ways the Rand exchange rate is more important because so many consumer goods are imported from South Africa. The rate went from R1 = MT 2.8 in 2014 to R1 = MT 5.6 in October 2016 and stabilised at R1 = MT 4.6 in the second half of the year. In dollar terms, the Metical is worth half what it was four years ago, and in Rand terms 60%, which means all imported goods are significantly more expensive.

By Joseph Hanlon

Source: News reports & clippings