Currency Economy Finance Gold

USD, ZAR, RMB and gold constitute Mozambique’s international reserves

Mozambique’s Net International Reserves (RILs) consist mainly of US dollars, rands, yuan and gold. The Bank of Mozambique explained to @Verdade that “the constitution of foreign reserves in Chinese currency is also in line with the process of internationalisation of this currency”.

About 64 percent of our country’s Net International Reserves are held in US dollars. Twelve percent is held in South African rands, 10 percent in yuan, six percent in gold, four percent in New Zealand dollars, two percent in Australian dollars, one percent in UK pounds sterling, and the remaining one percent is made up of Euros, Swiss francs, Swedish crowns, Norwegian crowns, Canadian dollars, Japanese yen and South Korean won.

The central bank explained to @Verdade that RILS, currently valued at US $ 3.1 trillion, is partly constituted in Yuan by the “need to comply with the internationally adopted principle (good practices) of Reserve Asset Allocation of a country based on the structure of its liabilities”.

“As is known, Mozambique has liabilities to China arising from the need for import payments and external debt. It should also be noted that the constitution of foreign reserves in the Chinese currency is also in line with the process of internationalisation of this currency and with the inclusion of RMB (renminbi) in the basket of SDR currencies (special drawing rights of the IMF),” the central bank explained to @Verdade.

Source: A Verdade  via Club of Mozambique

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