Mozambique keeps key rate at 9.25% as central bank targets forex shortages

Mozambique’s central bank kept its benchmark interest rate unchanged at 9.25 percent on Wednesday as it introduced measures aimed at increasing foreign exchange supply and reducing pressure on businesses that depend on imports. Alongside maintaining the policy rate, the Banco de Moçambique introduced an incentive to encourage companies to reduce their reliance on imported goods and services. Read also: IFC, AFIS push new financing model as Africa targets capital for jobs, growth Under the new measure, commercial banks will be allowed to exclude loans to companies that cut their import dependence from the calculation of minimum statutory reserve requirements in local currency, the central bank said. The move is intended to encourage banks to lend to businesses that can replace imported products with locally produced goods, potentially reducing demand for foreign currency. Mozambique has faced foreign exchange shortages in recent months, creating difficulties for businesses that rely on imported machinery, raw materials and other inputs. Limited access to hard currency has also added pressure on companies seeking to meet external payment obligations. Read also: South Africa finds evidence of cement dumping from Mozambique, Vietnam By leaving the benchmark rate unchanged, the central bank maintained existing monetary conditions while using targeted measures to address foreign exchange constraints. The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Alongside maintaining the policy rate, the Banco de Moçambique introduced an incentive to encourage companies to reduce their reliance on imported goods and services. Read also: IFC, AFIS push new financing model as Africa targets capital for jobs, growth Under the new measure, commercial banks will be allowed to exclude loans to companies that cut their import dependence from the calculation of minimum statutory reserve requirements in local currency, the central bank said. The move is intended to encourage banks to lend to businesses that can replace imported products with locally produced goods, potentially reducing demand for foreign currency. Mozambique has faced foreign exchange shortages in recent months, creating difficulties for businesses that rely on imported machinery, raw materials and other inputs. Limited access to hard currency has also added pressure on companies seeking to meet external payment obligations. Read also: South Africa finds evidence of cement dumping from Mozambique, Vietnam By leaving the benchmark rate unchanged, the central bank maintained existing monetary conditions while using targeted measures to address foreign exchange constraints. The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: IFC, AFIS push new financing model as Africa targets capital for jobs, growth Under the new measure, commercial banks will be allowed to exclude loans to companies that cut their import dependence from the calculation of minimum statutory reserve requirements in local currency, the central bank said. The move is intended to encourage banks to lend to businesses that can replace imported products with locally produced goods, potentially reducing demand for foreign currency. Mozambique has faced foreign exchange shortages in recent months, creating difficulties for businesses that rely on imported machinery, raw materials and other inputs. Limited access to hard currency has also added pressure on companies seeking to meet external payment obligations. Read also: South Africa finds evidence of cement dumping from Mozambique, Vietnam By leaving the benchmark rate unchanged, the central bank maintained existing monetary conditions while using targeted measures to address foreign exchange constraints. The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Under the new measure, commercial banks will be allowed to exclude loans to companies that cut their import dependence from the calculation of minimum statutory reserve requirements in local currency, the central bank said. The move is intended to encourage banks to lend to businesses that can replace imported products with locally produced goods, potentially reducing demand for foreign currency. Mozambique has faced foreign exchange shortages in recent months, creating difficulties for businesses that rely on imported machinery, raw materials and other inputs. Limited access to hard currency has also added pressure on companies seeking to meet external payment obligations. Read also: South Africa finds evidence of cement dumping from Mozambique, Vietnam By leaving the benchmark rate unchanged, the central bank maintained existing monetary conditions while using targeted measures to address foreign exchange constraints. The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The move is intended to encourage banks to lend to businesses that can replace imported products with locally produced goods, potentially reducing demand for foreign currency. Mozambique has faced foreign exchange shortages in recent months, creating difficulties for businesses that rely on imported machinery, raw materials and other inputs. Limited access to hard currency has also added pressure on companies seeking to meet external payment obligations. Read also: South Africa finds evidence of cement dumping from Mozambique, Vietnam By leaving the benchmark rate unchanged, the central bank maintained existing monetary conditions while using targeted measures to address foreign exchange constraints. The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Mozambique has faced foreign exchange shortages in recent months, creating difficulties for businesses that rely on imported machinery, raw materials and other inputs. Limited access to hard currency has also added pressure on companies seeking to meet external payment obligations. Read also: South Africa finds evidence of cement dumping from Mozambique, Vietnam By leaving the benchmark rate unchanged, the central bank maintained existing monetary conditions while using targeted measures to address foreign exchange constraints. The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: South Africa finds evidence of cement dumping from Mozambique, Vietnam By leaving the benchmark rate unchanged, the central bank maintained existing monetary conditions while using targeted measures to address foreign exchange constraints. The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

By leaving the benchmark rate unchanged, the central bank maintained existing monetary conditions while using targeted measures to address foreign exchange constraints. The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The new framework gives commercial banks a greater role in directing credit towards businesses capable of producing goods and services locally, with the aim of easing the economy’s dependence on imports and reducing pressure on foreign exchange demand. Related News Who was Wicknell Chivayo, the Zimbabwean billionaire killed in a helicopter crash Nigeria launches digital postcode to solve the ‘where’ problem behind N80bn losses Nigeria at 66: Obi laments poverty, insecurity, hunger, says APC promises fall short of reality Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.