Mozambique’s international reserves fall in November

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Mozambique’s international reserves fall in November

1:57 CAT | 08 Jan 2025

File photo: Banco de Moçambique

Mozambique’s net international reserves (NIR) fell again in November, compared to the previous month, to US$3.682 billion (€3.572 billion), according to official data from the central bank.

According to the Bank of Mozambique, NIR at the end of last September amounted to US$3.762 billion (€3.607 billion), falling in October to US$3.704 billion (€3.552 billion), covering around three months of import needs.

Reserves had grown by January 2024 to almost US$3.601 billion (€3.453 billion), which was then the highest value since September 2021, and in July they reached US$3.807 billion (€3.650 billion), a three-year record.

The governor of the Bank of Mozambique said on November 8 that the country’s foreign currency reserves were “comfortable” but are not to be “burned”.

“We are not going to burn reserves and we are not burning reserves. They remain there to allow the normal functioning of our country and our institutions,” Rogério Zandamela said while outlining the country’s medium term economic prospects.

Given the paucity of foreign currency in the domestic market, Mozambican businesspeople are urging the central bank to ease the mandatory foreign currency reserve coefficients, which currently require commercial banks to deposit 39.5% of their total holdings in dollars with the central bank, compared to only 11.5% in 2022.

Source: Lusa