Mozambique: Central bank maintains a 12.75% interest rate as a guide
File photo: A Bola
Mozambique’s foreign currency reserves end 2019 at comfortable levels, the central bank said after the last meeting of its Monetary Policy Committee (MPC) of the year.
“The country’s international reserves remain at comfortable levels,” the agency said in a statement.
“In the first week of December, gross international reserves stood at $3.661 billion (€3.29 billion), enough to cover more than six months of imports, excluding major projects,” the statement added.
The Monetary Policy Committee (CPMO) of the Bank of Mozambique decided on Thursday to maintain the monetary policy interest rate (MIMO rate) at 12.75%, due to inflationary risks, such as the worsening of military instability.
Even so, it says that forecasts of recovery of economic growth in 2020 remain, even if below its potential.
Mozambique’s Gross Domestic Product (GDP) grew 2% in the third quarter of this year compared to the same period last year, which means that the Mozambican economy slowed for the third consecutive quarter, according to the country’s National Statistics Institute (INE).
Banco de Moçambique on Thursday said that the domestic public debt has decreased slightly since the last meeting of the CPMO, on 31 October.
“Domestic public debt contracted with recourse to Treasury Bills, Treasury Bonds and advances from the Bank of Mozambique, fell from 140,610 million to 140,073 million meticais [around €2,000 million].
The reduction reflects the amortisation of Treasury Bonds at around 567 million meticais (€8 million) and does not consider other domestic public debt amounts, such as loan and lease contracts, as well as overdue liabilities.Source: Lusa
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