Mozambican currency appreciates; Euro remains at 12-month low against the Metical
The International Monetary Fund (IMF) representative in Mozambique, Ari Aisen, on Friday in Maputo praised the measures the country’s authorities have implemented to bring an end to the economic crisis, pointing to the sharp drop in inflation as a significant gain.
Aisen said the actions put in place by the Mozambican government to reduce the impact of the economic and financial crisis that has plagued the country since 2016 were positive. He was speaking at a lecture on “The economic scenario in Mozambique – in addition to statistics and economic policies” at Mozambique’s Pedagogical University.
“The country’s external deficit has improved due to a drop in imports and increased exports, which was boosted by rising prices and production of coal, aluminium and other traditional export products from Mozambique,” said Aisen.
The Bank of Mozambique, he said, acted effectively in the face of the crisis, managing to mobilise net international reserves with a capacity to cover more than seven months of imports.
“Another piece of good news was inflation, which, having peaked at 25% in 2016 fell to 4%, which protects the purchasing power of Mozambican families,” added Aisen.
Aisen the adjustment of the macroeconomic scenario adopted by the Mozambican Government, starting in 2016, had been appropriate.
“The Bank of Mozambique adjusted interest rates and reserve requirements, because at the time there was a lot of meticals and a few dollars, which drove a sharp depreciation of the currency,” said the IMF representative in Mozambique.
The Mozambican economy is trying to recover from a sharp decline in 2016, caused by the combined effect of natural disasters, falling commodity prices on the international market and the discovery state-backed loans worth over €2 billion that the previous Government secretly provided to a fishing company and two maritime safety companies.Source: Macauhub