Mozambique’s Net International Reserves (NIR) reached a peak in more than four years, rising in June to $3.920 billion (€3.357 billion), as per data from the country’s central bank.
These reserves, held in foreign currencies, had dropped to their lowest in about a year this February, dipping to $3.593 billion (€3.078 billion), before experiencing four consecutive months of growth.
They increased by 1% during March to $3.619 billion (€3.100 billion), 4.3% in April, 1.5% in May, and 2.5% in June, according to the latest statistical report from the Bank of Mozambique released this week.
In June, the reserve amount covered more than three months of the country’s estimated import needs.
These reserves, crucial for ensuring external payments for goods and services by businesses, had previously peaked in July 2024, reaching $3.807 billion (€3.261 billion), which was the highest in three years, now surpassed again more than a year later.
The Bank of Mozambique is implementing measures to increase “fluidity” in the foreign exchange market, aiming to redistribute available currency volumes, stated Governor Rogério Zandamela on July 31.
“These measures involve adjusting and reallocating resources to better track their utilization,” explained the governor during a press conference in Maputo, following the bimonthly Monetary Policy Committee (MPC) meeting.
“An increase in market fluidity is expected. To boost public sales, the Bank of Mozambique recently reduced daily foreign currency retention limits by banks. This complements the decision to increase the minimum conversion rate of export earnings from 30% to 50%, implying greater availability and access to foreign currencies,” he added, describing the meeting’s conclusions.
Responding to journalists, Zandamela addressed business concerns about insufficient access to foreign currencies, particularly for securing imports, noting the “need to adjust certain segments of liquidity.”
“I reiterate, this is very important. One aspect is the aggregate distribution of liquidity across our system, while another is its adequate distribution among the country’s various segments, including exporters, importers, and investors,” he stated.
Mozambique’s President, Daniel Chapo, in July accused banks of “creating” currency scarcity and turning it into a “business opportunity,” highlighting that foreign currency was never lacking for dividend distributions.
“When foreign currency is scarce, it becomes a business opportunity, occurring even in commercial banks, where deals are made daily. There’s no real shortage [of foreign currency], it’s a created scarcity,” Chapo said on July 15 during a meeting with local entrepreneurs in Sofala province, central Mozambique.
The Confederation of Economic Associations (CTA) of Mozambique, the country’s largest business association, warned on February 18 that a shortage of currency in banks was impacting operations, especially in the health, aviation, fuel, and food import sectors.
During the Sofala meeting, listening to local entrepreneurs’ concerns, Chapo warned that despite the scarcity of foreign currency in the banking sector, it was never lacking for “dividing dividends among themselves” or “paying their salaries,” questioning: “Have you ever heard it was lacking? It only lacks for Félix Machado [a local entrepreneur] when he wants to import something. It’s truly a situation we must continue to work through to overcome.”
