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According to a statistical report from the Bank of Mozambique, the volume of these reserves broke the previous record of 257,777 billion meticais (€3,627 billion) in June and was also the second consecutive monthly increase.
Mandatory reserves held by Mozambique’s banks grew again in July, reaching an all-time high of 258.224 billion meticais (€3.634 billion), according to data from the central bank.
According to a statistical report from the Bank of Mozambique, the volume of these reserves broke the previous record of 257,777 billion meticais (€3,627 billion) in June and was also the second consecutive monthly increase.
The mandatory reserves of commercial banks at the central bank were set by the Bank of Mozambique at a ratio of 10.5% in national currency and 11% in foreign currency at the beginning of January 2023. However, in the first six months of 2023, the central bank increased the ratio twice, to absorb excess liquidity in the banking system, with the potential to generate inflationary pressure.
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The last of these increases took place in June last year, reaching 39% of deposits in national currency and 39.5% in the case of foreign currency to be held in bank reserves.
