Maputo, Sept. 28, 2026 (Lusa) - The volume of Mozambican banks' reserve requirements fell by 0.4% in July to 301.74 billion meticais (€4.103 billion), continuing the decline that began in June after a sharp rise driven by tighter reserve ratios.
According to statistical data from the Bank of Mozambique that Lusa accessed on Monday, these commercial banks' mandatory reserves held with the central bank stood at 302.94 billion meticais (€4.137 billion) in June, down from 308.88 billion meticais (€4.183 billion) in May.
In May, these compulsory reserves rose by 30.6% to 23658 billion meticais (€3.204 billion), up from 18.06 billion meticais (€ 2.486 billion) in April.
The volume of these reserves peaked at 259.19 billion meticais (€3.509 billion) in December 2025, then fell to 225.305 billion meticais (€3.050 billion) in January this year before gradually rising again through March.
Following the adjustment in April, reserve requirements surged in May as the central bank's decision to further tighten the ratios took effect, before correcting slightly in June and July while remaining well above the levels seen in the first four months of the year.
The Bank of Mozambique set the reserve requirements for commercial banks at 10.5% for liabilities in national currency and 11% for liabilities in foreign currency at the start of 1 January 2023. In the first six months of 2023, the central bank raised the ratios twice to «absorb excess liquidity in the banking system, which had the potential to generate inflationary pressure», it explained at the time.
The last of these increases took place in June 2023, when the ratios reached historic levels of 39% for liabilities in national currency and 39.5% for liabilities in foreign currency.
Since 31 December 2022, when mandatory reserves stood at 62.1 billion meticais (€836 million), the volume of funds tied up with the central bank had risen by almost 400% by the end of 2024.
In response to a tight foreign-currency market, Mozambican business leaders had been urging the central bank since 2024 to ease the reserve requirement ratios, particularly those applied to foreign-currency deposits.
The central bank's Monetary Policy Committee (CPMO) took this decision on 27 January 2025, reducing the reserve requirement ratios to 29% for domestic currency and 29.5% for foreign currency.
On 25 May this year, the CPMO decided to maintain the reserve requirement ratio for foreign currency liabilities at 29.5%, but raised the ratio applied to domestic currency liabilities from 29% to 39%.
The then Governor of the Bank of Mozambique, Rogério Zandamela, explained at the time that the measure was intended to «absorb excess liquidity in the banking system, which could lead to greater inflationary pressure», against a backdrop of risks of rising prices linked to the fuel crisis and the conflict in the Middle East.
At its meeting on 29 July, the CPMO decided to leave the reserve requirement ratios unchanged at 39% for liabilities in national currency and at 29.5% for liabilities in foreign currency.
The next CPMO meeting is scheduled for 30 September.
PVJ/ADB // ADB.
Lusa
