Mozambique's Net International Reserves (NIR) again reached a historic milestone in November, standing at 4,053 million dollars, according to the latest figures released by the Bank of Mozambique.
This figure represents growth of 3% compared with October, when reserves totalled 3,937 million dollars. In August, the country had recorded the previous record of 4,035 million. The upward trajectory begun in September — with a monthly increase of 1% — thus culminates in a level that allows the country to cover more than three months of imports, according to the monetary authority's statistical report.
However, the apparent comfort in foreign exchange is not reflected in the reality of the business community. Álvaro Massingue, president of the Confederation of Economic Associations (CTA), warned, during the 20th Annual Private Sector Conference (CASP), of the persistent shortage of foreign currency in commercial banks, a situation that compromises the ability to import raw materials, honour contracts and grow businesses.
“The shortage of foreign currency is today an economic emergency. Without foreign currency, companies cannot import raw materials, cannot honour contracts and cannot grow”, Massingue stressed. The head of the association calls for priority access to foreign currency for exporting and producing companies, as well as the creation of incentives for exports and import substitution.
In response to the private sector's concerns, the governor of the Bank of Mozambique, Rogério Zandamela, assured on 31 July that the institution has been applying measures to increase liquidity in the foreign exchange market.
“These measures are nothing more than adjusting from here, taking certain resources from here, putting them there and monitoring more closely”, said Zandamela, at a press conference in Maputo, at the end of a meeting of the Monetary Policy Committee (CPMO).
The governor detailed that the central bank reduced the daily limits on foreign currency holdings by banks and raised from 30% to 50% the minimum conversion rate for export revenues, which should translate into greater availability of foreign currency for the domestic market.
Even so, Zandamela acknowledged that there remains a need for adjustments in certain liquidity segments, in an attempt to mitigate the constraints faced by economic operators.
