Physical money circulating in Mozambique increased by 10.6% over the month, reaching 78.270 million metichais (1.117 million euros) by December, according to an official report compiled by Lusa on Tuesday.
According to the statistical report of the Bank of Mozambique, the money in circulation in the country at the end of December 2023 corresponded to almost 243.2 million banknotes and 553.1 million coins, comparable to the total value of 70.775 million metichais (1.010 million euros) that were circulating at the end of November.
Despite this increase during the month, money in circulation at the end of 2023 was still 2.3% below the 80.870 million metichais (1.155 million euros) that was circulating in Mozambique in December 2022.
Withdrawal of money from circulation is a common practice of contractionary monetary policy aimed at reducing the money supply, usually used by central banks to curb rising prices.
Last December, the 20 meticai note was the most circulated note in Mozambique with a circulation of 47.8 million, while the 0.50 meticai note led the way with a circulation of 122.8 million.
Mozambique recorded cumulative inflation of 5.30% in 2023, rising a further 1.29% in December compared to November, according to data released Thursday by the National Statistics Institute (INE).
INE data shows that Mozambique “recorded an increase in the overall price level of approximately 5.30%” in the 12 months from January to December.
“The food and non-alcoholic beverages division showed the largest price growth, contributing 3.34 positive percentage points,” INE describes in the Consumer Price Index (IPC).
He adds that when analyzing the accumulated differences by product, “it is important to note the increase in prices for dried fish, corn, tomatoes, set meals in restaurants, cowpeas, fresh fish and beer for consumption outside the home.”
“This contributed approximately 2.51 positive percentage points to the total accumulated variance,” according to INE data.
In terms of the 12-month average change, the indicator says Mozambique “recorded a price increase of approximately 7.13%.”
“The most prominent divisions were Education, Miscellaneous Goods and Services, and Food and Non-Alcoholic Drinks, which varied by about 11.27%, 10.50% and 10.03% respectively,” we read.
On a monthly basis, prices in Mozambique rose by an average of 1.29% in December, according to INE, accelerating from a 1.17% increase in November.
Mozambique’s Economy and Finance Minister Max Tonela said in December that the country’s economy would grow by the equivalent of 5% of GDP in 2023 and could reach 5.5% in 2024. As for inflation, according to government forecasts, it should be 7% in 2023, repeating the same value in 2024.
Author: Lusa
Source: CM Jornal
I’m Sandra Hansen, a news website Author and Reporter for 24 News Reporters. I have over 7 years of experience in the journalism field, with an extensive background in politics and political science. My passion is to tell stories that are important to people around the globe and to engage readers with compelling content.