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The tightened availability of foreign exchange on the market has been contributing to a depreciation of the Mozambican currency, the metical, which has been trading above 65 meticais per US dollar since last week .
The metical has been losing strength since the beginning of 2020, and not even the investiture of Filipe Nyusi and the appointment of his government has seemed to stem the depreciation.
On Friday (14) the metical fell to just above 65 meticais per US dollar, according to the official foreign exchange statement issued by the Bank of Mozambique.
Its decline is the since April 2019, although in November it was quoted above 64 per dollar.
Economists consulted by @Verdade indicate that there is no cause for alarm, because the metical is simply reflecting the behaviour of the foreign exchange market, which has become more flexible, and point out that, whenever there is less foreign exchange in the market, the exchange rate increases.
Just over one year ago, the Bank of Mozambique eased the foreign exchange market, and has since imposed several measures to reduce the dollarisation of the economy by, for example, subjecting the opening of residents’ foreign currency bank accounts, either in Mozambique or abroad, to its authorisation.
By Aderito Caldeira
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