Mozambique's economic growth slowed at the end of 2023
in file CoM
The Mozambican currency is continuing to depreciate against the US currency, despite the injection of US$500 million by the Bank of Mozambique into the Interbank Foreign Exchange Market.
Last Friday (20) the metical’s official central bank exchange rate exceeded the threshold of 67 per US dollar, and on Thursday (26) fell to 67.24 per US dollar. @Verdade reports the US currency was trading above 68 meticais in the country’s main commercial banks.
This depreciation comes almost a week after the Bank of Mozambique decided in an emergency meeting to “introduce a foreign currency financing line for institutions participating in the Interbank Foreign Exchange Market, in the global amount of US$500 million, for a period of nine months”.
The truth is that economic activity, which had been in a ‘suspense’ since mid-2019, has come almost to a halt as a result of the Covid-19 pandemic, which has already dictated the postponement of investments in the natural gas projects in the Rovuma Basin, particularly by ExxonMobil, and depressed exports even further.
This week, Vale Moçambique, the enterprise responsible for the majority of Mozambique’s mineral coal exports, announced the repatriation of its Brazilian employees to Brazil, despite assurances that Vale’s mines in Moatize would remain in operation.
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