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Despite the exchange rate stability, the increase in net international reserves to support imports of goods and services, and the worsening access to foreign exchange in the national market has been a negative factor influencing transactions, CTA president Agostinho Vuma said at an economic briefing in Maputo recently.
The Confederation of Economic Associations of Mozambique (CTA) hits out at the new foreign exchange restriction measures imposed by the Bank of Mozambique.
CTA reiterates that the fall in the volume of imports and exports in the country recorded recently is due to measures that the Bank of Mozambique imposed. However, CTA members exuded optimism about the business climate in the country, which has considerably improved.
Despite the exchange rate stability, the increase in net international reserves to support imports of goods and services, and the worsening access to foreign exchange in the national market have been a negative factor influencing transactions, CTA president Agostinho Vuma said at an economic briefing in Maputo recently.
The impact can be seen in “the trend in import volume, as can be seen in the average monthly drop of 2.3% from January to February, and of 25% in the first quarter of 2024 compared to the same period in 2023, Vuma said. He stressed that the basis for generating foreign currency is exports, which in his opinion show weaknesses.
Except for large projects, the coverage of exports over imports is 20%, which means that, without large projects, the supply deficit reaches the 80% mark. Regarding macroeconomic performance, the data released indicate that there was a slowdown in economic growth in the first quarter of 2024.
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In addition, the reduction in MIMO rates from 17.25% in January to 15% in June influenced the reduction in interest rates in the financial markets.
