Mozambique: Physical money in circulation up 10.6% in month to 78.27B meticais

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Mozambique: Physical money in circulation up 10.6% in month to 78.27B meticais

3:18 CAT | 16 Jan 2024

FILE - For illustration purposes only. [File photo: Lusa]

Physical money circulating in Mozambique increased by 10.6% in the space of a month, ending December at 78,270 million meticais (€1,117 million), according to data from a report consulted by Lusa today.

According to a statistical report from the Bank of Mozambique, money in circulation in the country at the end of December, 2023, corresponded to almost 243.2 million notes and 553.1 million coins, and compares with the total value of 70,775 million meticais (€1,010 million) that were circulating at the end of November.

Despite this growth in the space of one month, money in circulation by the end of 2023 still stood 2.3% below the 80,870 million meticais (€1,155 million) in circulation in Mozambique by December, 2022.

The withdrawal of money from circulation is a common practice in contractionary monetary policy used by central banks to contain price rises.

Last December, the 20-meticais note was the one most circulated in Mozambique, with a quantity of 47.8 million units, while the 0.50 meticais note led the way, with 122.8 million units.

Mozambique recorded accumulated inflation of 5.30% in 2023, having grown by a further 1.29% in December, compared to November, according to data released on Thursday by the National Statistics Institute (INE).

INE data indicate that Mozambique “recorded an increase in the general price level of around 5.30%” over the 12 months from January to December.

“The food and non-alcoholic beverages division saw the biggest price increase, contributing 3.34 positive percentage points,” the INE Consumer Price Index (IPC) indicates.

INE adds that when analysing the accumulated variation by product, “it is important to highlight the rise in the prices of dried fish, corn grains, tomatoes, complete meals in restaurants, cowpeas, fresh fish and beers for off-sale consumption”.

“These contributed to around 2.51 positive percentage points in the total accumulated variation,” according to the INE.

Regarding the average variation over 12 months, the indicator says that Mozambique “recorded a price increase of around 7.13%”.

“The divisions of education, miscellaneous goods and services and food and non-alcoholic beverages were the most prominent, varying by around 11.27%, 10.50% and 10.03%, respectively,” we read.

In terms of monthly variation, prices in Mozambique, according to INE, rose by an average of 1.29% in December, accelerating compared to the 1.17% increase in November.

The Minister of Economy and Finance of Mozambique, Max Tonela, said in December that the country’s economy will have grown by the equivalent of 5% of GDP in 2023 and could reach 5.5% in 2024. As for inflation, the government forecasts 7% in 2023, repeating the same value in 2024.

Source: Lusa