The Governor of the Bank of Mozambique, Ernesto Gove, has declared that the key measures for stabilizing the country’s currency, the metical, are to reduce imports and to increase domestic production.

Interviewed by Radio Mozambique on Friday, in the southern province of Inhambane, Gove said “We need to join synergies to produce more, to reduce imports and to multiply activities that generate foreign currency by increasing exports”.

He urged Mozambicans to work together to build a business environment favourable to investment, production, productivity and employment.

According to the central bank’s own figures, between January and October, the metical lost 40 per cent of its value against the US dollar. However, in recent weeks the metical has staged something of a recovery, particularly against the South African rand, the currency in which most of the country’s food imports are denominated.

Gove also urged citizens to deposit their savings in banks, instead of keeping them at home. He noted that the great majority of citizens still do not possess bank accounts.

“Channelling savings to the banks is an important contribution to the country’s economy, and is a safe investment for depositors”, he argued. “The circulation of money outside of the banking system is harmful to the economy. It involves risks, including damaging the banknotes, replacing which costs the country foreign currency”.

Source: AllAfrica