Tomaz Salomão praises Bank of Mozambique for supporting limits on dollar use

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Tomaz Salomão praises Bank of Mozambique for supporting limits on dollar use

5:12 CAT | 14 Sep 2016

O País (Fle photo) / Tomaz Salomão

Mozambican economist Tomaz Salomão argues that limiting the use of the dollar is the right way to strengthen the national economy.

The chairman of the non-executive board of directors of Standard Bank, cited by O País, says that the Bank of Mozambique has taken a right decision by supporting limits on the circulation of the US dollar in the market by recognising the legitimacy of commercial banks limiting withdrawals.

Speaking at the Agrarian and Fishing Sectors Business Forum in Manica on Monday Salomão praised Rogério Zandamela’s appointment as governor of the Bank of Mozambique, and said that the first decision taken by his team was right.

“A major concern that has been raised in this meeting is the issue of the slippage of the metical. On Friday, the central bank made an announcement which I believe was right. I mean restricting the movement of dollars in our country as a way of strengthening of the metical,” he said.

The economist believes that the foreign currency restrictions will create economic growth, since, in his view, they will strengthen the national currency.

“There will be many people who will react adversely, but there is no doubt that this is the correct path. Our economy will be stronger if our currency is strong,” he said.

Tomaz Salomão raised other concerns at the forum, such as the under-invoicing of exported products, and challenged ministries to address the situation to boost foreign exchange earnings.

“In a number of the projects that are being developed, the final aim is to boost exports. We will not pay or receive prices that are not real – under-invoicing. If this happens, and in large productions such as those that we are witnessing, I am not saying that it is happening, but it is necessary that the relevant ministries and the financial sector are organised to prevent under-invoicing from happening as it results in the country not acquiring the necessary currency ,” Salomão said.

Source: O País