The shortage of foreign currency increased in 2025, partly due to a decline in external disbursements to the government and the suspension of USAID, according to Fitch in its latest credit rating assessment of the country. The American agency provided support amounting to $586 million (€505 million) to Mozambique in 2024, primarily for health and education projects, representing 3% of the Gross Domestic Product (GDP).
The new U.S. government, led by Donald Trump, suspended the activities of the United States Agency for International Development (USAID) early this year. Founded in 1961 to provide international humanitarian support, USAID was significant in health funding in Mozambique. The agency’s closure was announced on July 1.
At least 2,500 jobs were lost in Mozambique due to the cutback in U.S. aid through USAID, as reported by the Mozambican government in July, acknowledging it as “a problem” for the economy.
“The last meeting I had with the group formed by organizations that benefited from the funding mentioned about 2,500 jobs,” said Ivete Alane, Minister of Labor, Gender and Social Action, clarifying that there is no “official estimate.”
In its August assessment, which maintained the CCC rating assigned in February—the final level before financial default—Fitch also noted that the increase in April of the mandatory conversion share of export revenues to local currency, from 30% to 50%, “will alleviate part of the currency shortage,” along with the new program expected with the International Monetary Fund (IMF) by the end of the year.
Fitch also evaluates that Mozambique’s reserves are “stable,” but “risks persist.” It predicts that Mozambique’s international reserves will “remain broadly stable” at $3.5 billion (€3.02 billion) in 2025.
The Bank of Mozambique is adopting measures to increase “fluidity” in the foreign exchange market, attempting to redistribute the volume of available currencies, said Governor Rogério Zandamela on July 31.
“These measures are nothing more than adjusting here, reallocating certain resources to another area, and monitoring better,” the governor stated at a press conference in Maputo, following the Monetary Policy Committee (CPMO) meeting, which takes place every two months.
“An increase in fluidity in the foreign exchange market is anticipated. To boost sales to the public, the Bank of Mozambique recently reduced the daily holding limits of foreign currencies acquired by banks. This measure complements the decision to increase the minimum conversion rate of export revenues from 30% to 50%, which implies greater availability and access to currencies,” added the governor regarding the meeting’s conclusions.
Responding to journalists about business concerns over the lack of access to currencies, particularly to ensure imports, Zandamela noted that “there was a need to adjust certain liquidity segments.”
“I repeat, this is very important. It is one thing to have aggregate liquidity distribution, whether it exists as a whole in our system, and another is whether it is adequately distributed among various segments of the country, among exporters, importers, and investors.”
The Confederation of Economic Associations (CTA) of Mozambique, the country’s largest business association, warned on February 18 that the lack of currency in the banks was affecting operations, especially in the health, aviation, fuel, and food import sectors.
