The Confederation of Economic Associations of Mozambique - CTA suggests that the Bank of Mozambique review the mandatory reserve rates, currently close to 40%.

From the businessmen's point of view, these rates, combined with the shortage of foreign currency, could jeopardize the national economy's growth forecasts for this year.

From 2022 to 2023, the Bank of Mozambique successively increased the interest rate on mandatory reserves from 11.50% to 39.5%, putting pressure on foreign currency liquidity in the market, say the businessmen.

"Theoretically, the increase in the reserve requirement rate should be based on excess liquidity in the market. Looking at the behavior of the foreign exchange market, there is little liquidity flowing to companies. Net conversions increased by around 120%, a clear sign of the increase in liquidity held in banks. In other words, it means that commercial banks have started to retain liquidity in foreign currency, buying more from clients and selling less," reads the press release sent to the press. MZNews.

Entrepreneurs associate the lack of foreign currency in the country with the fact that a large part of the taxes from major projects are channelled to foreign markets.

"(...) the coverage of exports over imports is estimated at around 25%. If we include the Major Projects, the coverage of exports over imports reaches 90%", which could mean that "the deficit in the supply of foreign currency would be estimated at 10%, compared to 75% without the Major Projects".

"The Bank of Mozambique should not maintain such a high rate of mandatory reserves, at 39.5%, one of the highest in the world," they warn.