Financial operations between the Mozambican economy and the rest of the world in the first quarter of 2024 resulted in a net inflow of funds of 926.7 million dollars, compared to 894.6 million dollars in the same period in 2023. This is an increase of 3.6% in the flow of operations.

According to the data contained in the quarterly Balance of Payments (BoP) bulletin, recently released by the Bank of Mozambique (BdM), to which MZNews had access, the evolution recorded in the financial account was determined by the combined effect of the increase in financial flows in the Other Investment category by 68.1% to 279.2 million dollars, in a context in which the inflow of Foreign Direct Investment (FDI) fell by 10.6%.

"Excluding Major Projects (GP), the balance of the financial account stood at almost 1.7 billion dollars, which represents a growth in net inflows of financial resources of 15.6%," the document points out.

Looking at financial flows by instrument, the BdM report highlights that Foreign Direct Investment in Mozambique (FDI) saw a slowdown in net inflows of 10.6%, due to the reduction in investments in the extractive industry, especially in Major Projects (GP), at 25.9%.

Meanwhile, the document points out that in view of the above, economic transactions between Mozambique and the rest of the world resulted in an overall surplus of 174.6 million dollars, which contributed to an increase in the monetary authority's reserve assets, with the balance of gross international reserves standing at 3.6 billion dollars, enough to cover 3.1 and 4.8 months of imports of goods and services, including and excluding GPs respectively.

(Photo DR)