Mozambique’s net international reserves (RIL), needed to import goods and services, rose 1.5% in November to nearly $3.070 million (€2.763 million), thanks to supplies in banks, according to data scientists.
According to the statistical report of the Bank of Mozambique, to which Lusa had access this Thursday, these foreign exchange reserves at the beginning of November amounted to 3,024.8 million dollars (2,722.7 million euros), and the increase was due to the “backing of banks”, forced to create reserves, which increased by $165.3 million (€148.8 million) over the month.
Additionally, these accounts, which add up to an absolute increase in reserves of $44.9 million (€40.7 million) compared to the end of October, include a further $15.7 million (€14.1 million) for projects in the country and 18.5 million dollars (16.6 million euros). euro) for various foreign currency purchases.
Among the $234.5 million (€211 million) of reserve outflows in November, $151.8 million (€136.6 million) was attributable to bank transfers and $21.7 million (€19.5 million) related to repayments for Mozambique’s debt service. among the others.
According to the Bank of Mozambique, Mozambique ended November with enough reserves to cover the 3.1 months of import requirements expected this year, a period that extends to 3.8 months “excluding major projects.”
Last January, the Bank of Mozambique increased the ratio of required reserves to current foreign deposits from 11.5% to 28%, and in April it cut supplies to fuel importers from 100% to 60%.
The Mozambican government has set a net international reserves target of $2,936.6 million (€2,686 million) in the 2023 government budget, “equivalent to three months of covering imports of non-factor goods and services.”
The International Monetary Fund (IMF) announced in July that Mozambique’s international reserves were falling from 2021 onwards.
“Gross international reserves cover almost 4.3 months of imports. [final de 2022]”which exceeds the normally recommended minimum buffer” of “at least three months” refers to the IMF’s report on the final approval of the review of the Extended Fund Facility (ECF) for Mozambique.
The report adds that Mozambique’s international reserves have “fallen since the start of 2021” and reached $2,900 million (€2,580 million) at the end of last year.
The IMF acknowledges the impact of the “high cost” of fuel imports on Mozambique’s international reserves, taking into account foreign exchange supplies to major fuel importers.
“At the same time, imports not related to megaprojects have increased significantly over the past two years, further reducing import coverage of reserves,” the document notes.
Author: Lusa
Source: CM Jornal
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