Mozambique: International Reserves renew four-year highs

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Mozambique: International Reserves renew four-year highs

12:59 CAT | 14 Jul 2025

File photo: Lusa

Mozambican Net International Reserves (NIR) have regained four-year highs, rising to US$3.825 billion (€3.27 billion) in May, according to central bank data.

These foreign currency reserves had reached their lowest level in about a year in February, falling to US$3.593 billion (€3.072 billion), before three consecutive monthly increases. They grew 1% in March, to US$3.619 billion, 4.3% in April, and another 1.5% in May, according to the Bank of Mozambique’s most recent statistical report.

In May, international reserves covered more than three months of estimated import needs.

These reserves, which guarantee companies’ payments abroad for goods and services, reached US$3.807 billion (€3.255 billion) in July 2024, a three-year high that has now been renewed, a year later.

The governor of the Bank of Mozambique, Rogério Zandamela, acknowledged on May 30 that the country witnessed a “dollarization” of the economy between the end of 2024 and the beginning of this year, following the post-election crisis, particularly with attempts to withdraw foreign currency from banks.

“Today, looking historically—at the time, it wasn’t clear what that was—January was certainly the most difficult period […], I would say, from the end of the year, December, January. Then things calmed down,” said the governor, responding to journalists at the end of the Monetary Policy Committee (CPMO) meeting in Maputo.

Zandamela revisited, in particular, the assurance he made at the end of March of sufficient liquidity in the foreign exchange market, when businesspeople complained about the lack of access to foreign currency for imports. The central bank, the following month, adopted regulations to facilitate the process.

According to the governor, the position resulted from the assessment made up to that point, having subsequently noted the market’s attempt to “shield itself with the ‘dollarization’ of financial and non-financial assets”.

“This isn’t uncommon. It’s just that when there’s a crisis—let’s be honest—it’s also a problem of trust. When confidence is shaken, you saw the international travel during that period, you saw many people leaving the country. Some lost confidence in the country, some wanted to sell everything they had and leave: ‘Does our country have a future or not?’ This pressure isn’t surprising; it happened. But no one said what they were doing, and they weren’t going to,” Zandamela stated.

“This pressure [access to foreign currency] did exist, and it was very strong. And the banks played a role […], the banks know their customers,” he assured.

Mozambique experienced the most difficult post-election period following the general elections of October 9, 2024, with demonstrations, strikes, looting, and the destruction of businesses and public institutions as a way of contesting the results. Clashes with the police also caused around 400 deaths, according to organizations on the ground.

The violence ceased after a meeting on March 23 between presidential candidate Venâncio Mondlane, who does not recognize the election results and called for protests, and Mozambican President Daniel Chapo, who was inaugurated on January 15, during which both agreed to strive to end the violence in the country.

Source: Lusa