IMF mission to Mozambique expected on 22 September

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IMF mission to Mozambique expected on 22 September

3:09 CAT | 01 Sep 2016

File photo / A view of Maputo city, capital of Mozambique

The International Monetary Fund (IMF) mission to assess economic and financial developments in Mozambique arrives on the 22nd of this month. According to a note sent to financial news agency Bloomberg, the Fund team will be in the country for about a week to assess recent economic developments and advise the authorities on macroeconomic policies.

The IMF staff will also assess monetary policy measures implemented by the Bank of Mozambique following the increase of inflation and the decrease of the level of foreign currency reserves.

The news of the IMF visit comes shortly after the outgoing representative of the Fund in Mozambique, Alex Segura, said that the government was implementing the macroeconomic measures recommended by the institution in June rigorously, with the aim of restoring confidence following the disclosure of greater-than-expected public debt.

The macroeconomic measures, he explained, refer to monetary and fiscal policy.

Segura said he hopes the country would regain a privileged position on the African continent.

“I am hoping that the government is already taking appropriate measures at the level of the state budget and inflation control and that these macroeconomic measures are correct and create positive expectations, taking into account the recommendations left by the [IMF] mission in June, which are being implemented very strictly. In this matter, we are quite happy, ” he said.

Segura, who ends a three-year stay in Mozambique, said that the country would rise up again in the medium term and listed a number of measures that could help.

“I think the government is beginning to take some important measures. There was an amending budget adopted by parliament, and the Bank of Mozambique is taking steps to control inflation and the depreciation of the metical. On the other hand, investors are still interested in investing in Mozambique, a fact coupled with the huge potential of the country, with resources such as coal. This will bring in foreign exchange,” he said.

Source: Notícias