Fitch Solutions upgrades Mozambique's exchange rate to 71 meticals per dollar

The consulting firm Fitch Solutions upgraded on Tuesday the outlook for Mozambique's exchange rate, now forecasting that it will take 71 instead of 74 meticais for each dollar at the end of this year.

"We anticipate that the metical will depreciate from a rate of 63.75 meticais per dollar in the coming months, as we expect the current violence in Cabo Delgado province to continue and anticipate that the Bank of Mozambique will ease monetary policy in a context of the continuing covid-19 pandemic as an obstacle to economic growth and inflation control," the analysts write.

In a commentary on the evolution of the metical, sent to investors and to which Lusa had access, the analysts of this consulting company owned by the same owners of the Fitch Ratings agency point out that, despite the negative scenario, the forecast for the end of the year was improved.

"We have revised our year-end forecast from 74 to 71 meticais per dollar due to the improvement in the prices of coal and aluminum," two of the main exports of this Lusophone African country.

For 2022, Fitch Solutions anticipates that the Mozambican currency will continue on an appreciation path, reaching December of next year at 67 meticais per dollar, "with gas and coal exports increasing, along with rising foreign investment, which supports demand for the currency."

Lusa Agency

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