Forex shortage raising concern in Mozambique

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Forex shortage raising concern in Mozambique

5:01 CAT | 26 Aug 2016

AP (File photo)

“To get US$10,000 to import a machine will take me 20 years,” a Mozambican entrepreneur complains.

With commercial banks in Mozambique limiting the amount of foreign currency customers can withdraw each month, private customers and companies with foreign currency accounts are apprehensive at a time of severe economic and financial crisis.

Due to the decline in export sales, the Mozambican market has been experiencing a shortage of foreign currency recently, leading some banks to impose new monthly limits of 500 dollars, 500 euros and 1,000 rand on their clients.

So it is that our entrepreneur eager to go into agro-processing is contemplating two decades of daily visits to his bank to raise the required capital.

Economists say that these measures should be complemented by concrete actions to increase production for exports, resulting in more foreign currency entering the country.

Mozambique currently has exports worth about US$5 billion annually, up from US$300 million 20 years ago but nevertheless an amount far short of requirements.

Source: Voa Portugues