The Bank of Mozambique (BM) has made foreign currency available on the domestic market to the tune of 250 million dollars (around 55 billion meticais) since the end of January to meet demand.

According to NewsThe information was given by the institution's Governor, Rogério Zandamela, recently at a media briefing.

Incidentally, it was on the same occasion that Zandamela said there was no need to change the mandatory reserve ratio, not least because the current situation is comfortable and there is no shortage of foreign currency, as the business community claims.

At the first CPMO meeting at the end of January, the Central Bank announced a reduction in the mandatory reserve coefficients for liabilities in national currency from 39 percent to 29 percent and in foreign currency from 39.50 percent to 29.50 percent. 

"Now we're calm, we think the decision that was taken was the right one and, overall, it gave the results we expected," said the governor.  

He added that the latest changes were made because the indicators showed that there was a liquidity deficit in the market, which in his opinion is not the case today. 

Whether true or not, widely reported facts reveal shortages, for example, of fuel throughout the country, which is said to be entirely related to the shortage of foreign currency and the commercial banks' fear of accepting the fuel suppliers' proposals for guarantees.

Furthermore, some industries, such as the bakery sector, have already raised the possibility of the sector going through a period of crisis, since the corn grain processing industries are facing difficulties in importing the raw material due to the shortage of foreign currency.