The Mozambican currency, the metical, has been appreciating considerably against the US dollar (USD) in the last few days, reversing the trajectory observed in the last 12 months, during which the US dollar rose in value from 65 to 75 meticais.
The reversal of the scenario began to take shape at the beginning of March, after the Bank of Mozambique took monetary policy measures, with emphasis on the increase of reference interest rates in the national financial system.
At the end of February, buying US$1.00 cost 74 meticais. This Monday (29), the dollar was selling at 68 meticais, according to the Bank of Mozambique exchange rate. The US dollar cost also declined sharply, from 75 meticais at the end of February to 70 meticais.
These figures indicate that, of the ten points the metical lost against the US dollar over one whole, it recovered a full half in less than a month.
The Euro is also losing value against the metical. One Euro cost 91 meticais at the end of February, but this Monday, only 82. In terms of buying, one Euro fell from 89 to 81 meticais.
The South African rand is also falling, albeit less rapidly. Although it cost five meticais to sell, at present, the rand is now 4.69 meticais to sell and 4.6 meticais to buy.
The overall result is that, the higher the value of the metical, the less oppressive will be the cost of living for the families and companies plunged mired in the pandemic crisis.
By Evaristo Chilinde