Mozambique: Metical drops, prices rise

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Mozambique: Metical drops, prices rise

2:07 CAT | 04 May 2016

The metical depreciated by 2.12 percent in the first half of April, falling to 51.62 meticais to the dollar in the inter-bank market, 53.02 meticais In commercial banks, and 57.24 in private currency exchanges.

The metical fell 2.91 percent against the South African rand and 1.09 percent against the Euro.

The depreciation of the metical extended to other segments of the domestic foreign exchange market, namely 3.43 percent in the average rate of commercial banks and 3.79 percent in private exchanges. The difference between the average MZN/USD exchange rate in commercial banks and the inter-bank market increased by 131 basis points to 2.71 percent.

Monday’s data indicate that the metical had depreciated further compared to the middle of last month, with one US dollar worth 53.49 meticais on the inter-bank market.

Prices of goods and services rising

Given the problems of the Mozambican economy, economists have been warning of further sharp falls in the national currency against the dollar, increasing the cost of living as the depreciation of the currency makes imports more expensive .

A Bank of Mozambique statement says that its weekly survey of prices of goods and services shows prices rising in the first half of April in Maputo city compared with the first half of March, though it did not say by how much.

In the previous month, Maputo recorded a slight reduction in commodity prices of 0.31 percent, although several products were more expensive.

Source: O País