Mozambique central bank says devaluation of metical due to economic factors

Mozambique’s Central Bank, Banco de Mocambique says the sharp devaluation of the country’s currency, the metical against the US dollar is the result of cyclical factors and not of the high value of loans contracted for the implementation of some public works on Monday.

Central bank governor, Ernesto Gove is quoted by state-controlled daily newspaper Noticias as saying the dollar had been rising in value globally, reaching worrying levels not only against the metical but also significantly against the Russian ruble, the Brazilian real and some currencies in Southern Africa.

The newspaper says Gove was speaking during a National Conference on Public Debt. Gove denied that works such as construction of the $500 million Maputo ring road and the $750 million Maputo/Catembe bridge as well as setting up tuna company Ematum were the reasons for the sharp devaluation of the national currency.

Source: StarAfrica