Mozambique: Net international reserves hit US$4.15 billion in January

Mozambique’s net international reserves (NIR) grew again in January, reaching US$4.152 billion, according to data from a statistical report by the central bank, the Bank of Mozambique. These reserves – foreign currency needed for the import of goods and services – had risen by 1% in September to US$3.937 billion, as they did in October, following the previous peak of US$4.035 billion in August. From December to January, they increased by almost 1%, according to the historical data in the report obtained by Lusa, covering more than three months of import needs for goods and services.

However, in response to complaints from businesses about a shortage of foreign currency in the banking system, a Mozambican government source told Lusa that the possibility of lowering the reserve level is under study, given that reserves have remained practically above three months of import requirements. Despite this volume of reserves, businesses continue to report difficulty accessing foreign currency needed for imports, as highlighted in November by Álvaro Massingue, president of the Confederation of Economic Associations (CTA) of Mozambique. “The shortage of foreign currency is now an economic emergency.

Without foreign currency, companies cannot import raw materials, fulfil contracts, or grow. The state must prioritise access to foreign currency for producing and exporting companies and create incentives for exporters and import substitution,” Massingue said at the opening of the 20th Annual Private Sector Conference (CASP), the country’s largest public-private and business dialogue event. The central bank governor, Rogério Zandamela, has repeatedly insisted that there is liquidity in the foreign exchange market, rejecting any intervention.

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Meanwhile, the International Monetary Fund (IMF) in February recommended that Mozambique adopt, among other measures primarily related to fiscal containment, greater exchange rate flexibility, bringing official rates closer to parallel market levels. “Delaying reforms will worsen the crisis and increase adjustment costs. Immediate and coordinated action is urgently needed to restore stability, protect vulnerable groups, and lay the foundation for sustainable and inclusive growth,” the IMF said in its recommendations following the 2025 regular consultations.

In that assessment, the IMF noted that Mozambique’s monetary policy “must remain restrictive”, but warned that “monetary easing risks worsening the current foreign currency shortage,” advocating exchange rate policies that support external adjustment and competitiveness. “Greater exchange rate flexibility would help strengthen the external position, restore balance in the foreign exchange market, reduce the gap between official and parallel rates, and improve resource allocation. Exchange controls should not be used as a substitute for justified macroeconomic policy adjustments. Their removal should be gradual and carefully planned to avoid disruptions,” the IMF wrote.

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