Mandatory Reserves of Mozambican Banks Fell by 28%

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At the end of December, these reserves stood at 291.457 million meticais (€4.078 million), a record amount, according to the central bank’s records.

The mandatory reserves that Mozambican banks have to place with the central bank, based on deposits, fell 28% between January and March, to 209.902 million meticais (€2.936 million), according to data compiled by Lusa.

According to data from statistical reports by the central bank, which in January eased the restrictive measures surrounding these reserves and which will analyse this situation again this Wednesday, the volume of these mandatory deposits had previously reached historic highs.

At the end of December, these reserves stood at 291.457 million meticais (€4.078 million), a record amount, according to the central bank’s records.

The Bank of Mozambique set the mandatory reserves of commercial banks at the central bank at a ratio of 10.5% in national currency and 11% in foreign currency at the beginning of 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 2023, reaching 39% of deposits in national currency and 39.5% in the case of foreign currency held in bank reserves.