Mozambique has strengthened its external position by maintaining gross international reserves at comfortable levels, allowing it to cover more than six months of imports. The increase in international reserves also counted with the recent allocation of Special Drawing Rights (which serves to supplement the official reserves of member countries) by the International Monetary Fund (IMF) in an amount equivalent to 308 million dollars.

These figures were provided by the Governor of the Bank of Mozambique (BM), Rogério Zandamela, during the Bank's Consultative Council held in Nampula. He also said that after a slight variation of 0.1 percent in the first quarter, the Gross Domestic Product (GDP) recorded annual growth of about two percent in the second quarter of 2021, after a contraction of 3.5 percent in the same period of 2020.

Meanwhile, annual inflation stood at 6 percent in September 2021 and the national currency, the Metical, appreciated against the United States Dollar by 15 percent from January to date.

"In view of the positive results achieved in the indicators under our management, at the last Monetary Policy Committee meeting held in September 2021, we decided to substantially reduce the required reserve coefficients in domestic and foreign currency," he said.

The reduction in reserve requirements has injected more than $500 million into the financial system, which could contribute to the ongoing process of economic recovery.

The Consultative Council will last for three days, and the first two days will deal with internal issues, including a reflection on the challenges posed by the Covid-19 pandemic, and the third day will feature a presentation and public discussion on "Challenges and Opportunities in Cashew Marketing and Processing: The Case of Nampula.