Maputo, July 14, 2025 (Lusa) - Mozambique’s net international reserves (NIR) reached a four-year high in May, growing to $3.825 billion (€3.27 billion), according to data from the central bank.
These reserves - in foreign currency - had recorded their lowest level in about a year in February, falling to $3.593 billion (€t3.072 billion), before three consecutive monthly increases. They grew 1% in March to US$3.619 billion (€3.094 billion), 4.3% in April and another 1.5% in May, according to the latest statistical report from the Bank of Mozambique.
In May, international reserves covered more than three months of estimated import needs.
These reserves, which guarantee the payment of goods and services abroad by companies, reached $3.807 billion (€3.255 billion) in July 2024, which was then a three-year high, and were renewed a year later.
The governor of the Bank of Mozambique, Rogério Zandamela, acknowledged on 30 May 2024 that the country had experienced a “dollarisation” of the economy between the end of 2024 and the beginning of this year, following the post-election crisis, particularly in the attempt to withdraw foreign currency from banks.
“Today, looking back, clarity emerged later, but January was certainly the most difficult moment [...], I would say from the end of the year, December, and January. Then things calmed down,” said the governor, responding to journalists at the end of the Monetary Policy Committee (CPMO) meeting in Maputo.
Journalists questioned Zandamela, in particular, about the guarantee he gave at the end of March that the foreign exchange market would have sufficient liquidity, at a time when businesspeople sought greater access to foreign currency for imports. The central bank adopted regulations the following month to facilitate the process.
According to the governor, the assessment made at the time produced the position, and subsequent findings showed that the market attempted to “shield itself with the ‘dollarisation’ of financial and non-financial assets”.
“This happens fairly often. In a crisis, let’s be frank, confidence also comes into play.”
When it shakes confidence, you saw the trips abroad during that period; you saw a lot of people leaving the country. Some lost confidence in the country, some wanted to sell everything they had and leave: "Does our country have a future or not? " This pressure is understandable; it happened. But no one said what they were doing, and they preferred to remain silent,” he said.
“This pressure [access to foreign currency] did exist, and it was very strong. And the banks played a role [...], the banks know their customers,” he said.
Mozambique experienced a complex post-election period after the general elections of 9 October 2024, with demonstrations, strikes, looting and destruction of businesses and public institutions as a means of contesting the results. Clashes with the police also left around 400 people dead, according to organisations on the ground.
The violence ceased after a meeting on 23 March between presidential candidate Venâncio Mondlane, who contests the election results and called for protests, and Mozambican President Daniel Chapo, who took office on 15 January, during which both agreed to end the violence in the country.
PVJ/ADB // ADB.
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