Mozambique: Banks cut benchmark interest rate to 18% in May
Metical appreciates against the Euro
2:24 CAT | 22 Aug 2019
Picture: DW
Continuing a trend of appreciation which has obtained since April, the Mozambican metical on Tuesday completed one week with an exchange rate lower than 68 meticais to the Euro, according to international financial company Euronet.
The Euro was worth 72.57 meticais on April 17, its best rate of the year, but since then the metical has been gaining ground and the Euro has become cheaper.
The Mozambican metical was trading at 66.88 to the Euro on Friday, a year low for the European currency.
This value was close to the Euro’s lowest for the last two years, recorded on August 11, 2018, when one Euro was worth 66 meticais.
The Bank of Mozambique forecasts lower medium-term currency pressure due to “greater inflows of foreign currency to finance post-disaster reconstruction”, alluding to the cyclones earlier this year, and to support for “natural resource exploitation projects” – in particular, natural gas, Wednesday’s central bank Monetary Policy Committee statement reads.
“It is also expected that the average price of oil on the international market will remain favourable, given the slowdown in global economic activity,” it adds.
Source: Lusa
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