Bank of Mozambique governor apprise diplomats on economic developments

 Bank of Mozambique governor apprise diplomats on economic developments

Bank of Mozambique governor apprise diplomats on economic developments.

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The Governor of the Bank of Mozambique, Rogério Zandamela, met with ambassadors of the countries of origin of capital invested in the banking sector in Mozambique to share information on financial developments as well as on the economic prospects of the country.

On the occasion, the Governor said that the perspectives for the years 2021 and 2022 point to a gradual recovery of the economy, driven by the improvement in the external demand, while inflation is also expected to remain in single digits.

In the short and medium term, benefiting from the recent exchange rate stability, despite the prospects for rising food and oil prices on the international market.

“The Governor also pointed out that annual inflation remains under control in single digits, having settled at 5.6 percent in August, despite having registered an acceleration compared to December 2020, justified by the end of the term of part of the price containment measures decreed by the Government in the face of COVID -19, of the climatic shocks and the pass-through of the Metical depreciation to prices household appliances,” Bank of Mozambique said in a communique.

This type of meeting is held annually, in the period preceding the Council Consultative of the Bank of Mozambique, which did not take place in 2020 due to restrictions imposed by the global health crisis

In a separate meeting Zandamela, met the Ambassador of Mozambique appointed to the State of Qatar and the High Commissioner of Mozambique assigned to the Republic of Malawi, Isac Massamby and Elias Zimba, respectively.

In the separate meetings, the Governor congratulated the nominations and wished successes in diplomatic missions and subsequently presented the developments of the economy of the country, having highlighted the gradual recovery of the economy, despite the situation that lives in Cabo Delgado and the negative impacts resulting from COVID-19.

Zandamela also highlighted the evolution of the main macroeconomic indicators, having mentioned that, despite the negative growth registered in 2020, the GDP grew in the order of 2% in the 2nd quarter of this year, reflecting the increase in external demand.

Regarding the Metical exchange rate, Zandamela stated that it remains stable, despite the recent trend towards depreciation, as the country holds international reserves at comfortable levels, sufficient to cover more than 6 months of imports of goods and services.

He pointed out, there are still some uncertainties in the economy, with note the risks of the emergence of new variants of COVID-19 and the challenges within the scope of fiscal component.

“The Governor stressed the need to continue to promote the economic potential of the country, with a view to attracting foreign direct investment from Qatar, especially in the component of natural gas exploration, and highlighted the good relationship between the Reserve Bank of Malawi and the Bank of Mozambique, highlighting the Memorandum of Understanding signed in 2017, which provides for cooperation in the exchange component of information on supervision and regulation,” said the bank of Mozambique.

Fidelity Hamilton Mhlanga

Fidelity Hamilton Mhlanga has been writing finance and business news over the past 5 years. He earned a BSC in Media and Society Studies and Masters of Development Studies from Midlands State University, in Zimbabwe. He follows mining, insurance, banking and energy stories. He is passionate about development and growth.

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