Africa-Press – Mozambique. The Bank of Mozambique says its assessment of the current stage of the foreign exchange market indicates that the country remains liquid and stable, considering indicators such as revenue from exports and other factors.
The information was recently provided by the administrator of the Central Bank, Jamal Luis Omar, in response to concerns raised by the Confederation of Economic Associations of Mozambique during the Business Environment Monitoring Council (CMAN) meeting, which took place last week in Maputo.
Nelson Mavimbe, president of the Fuel Retailers Association, explains the concern by stating that there are some difficulties in accessing foreign currency in commercial banks and questions why the Central Bank withdrew from participating in the fuel bill alongside retailers.
He also complained that fuel margins have not been reviewed for over five years.
Fuel margins are a value defined by law through decree 89/2019, which aims to ensure adequate return on investment in the business to cover interest rates and other costs.
“We have operational costs that are systematically increasing, reaching a situation of unsustainability,” he said.
Regarding the lack of foreign currency in commercial banks and the withdrawal of the Bank of Mozambique’s participation in the fuel rate, Jamal Omar explains that the Mozambican foreign exchange market is stable, exports continue normally, as do conversion levels.
“There is a requirement that up to 30% of export revenue be converted in commercial banks; this measure aims to ensure that commercial banks have liquidity or foreign currency to support their clients in export transactions,” he explained.
He also clarified that exchange rate statistics point to levels of stability.
“From our assessment, we do not see a situation of disruption, from a global perspective, but we have been receiving information about difficulties in accessing foreign currency by national entrepreneurs in commercial banks,” admitted Omar.
He stated that this is something the Bank is studying in depth to ascertain the causes of this difficulty. What he can ensure is that if any disturbances or widespread shortage of foreign currency are detected, the Bank will not hesitate to take necessary measures to ensure exchange rate stability.
Regarding the participation in the fuel bill, Omar informed that the measure was introduced in 2005 because at that time there were export problems in the country, as an alternative while the economy gained maturity.
“The withdrawal of the Bank of Mozambique from participating in the fuel bill was a duly studied and well-considered measure, at a time when our economy gained maturity from the perspective of exports, and the banks were duly informed about the exit from this process.”
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