The Governor of the Bank of Mozambique revealed that the current account deficit deteriorated by US$ 414 million during the first half of the year, due to “the payment of specialized services of the megaprojects, in particular with regard to the construction of the platform in the Rovuma Basin.
“At the same time, the central bank began to prepare the economy for the significant inflow of foreign exchange that is expected to happen with the progress of the projects for the exploration of Natural Gas.
Speaking to reporters last Thursday (30), in a press conference that followed the meeting of the Monetary Policy Committee, Rogério Zandamela said that during the first half of 2018 “the Current Account deteriorated slightly from 414 million (US$ 417 million) due to the payment of specialized services for the natural gas project abroad, namely the construction of the floating liquefied natural gas plant (FLNG).
“It’s good news, these services have to be paid, they are necessary because they will generate more exports and more reserves in the future. At the moment it is an account to pay, ” added the Governor of the central bank.
Still analyzing the Zandamela Current Account, there was a slight deterioration in the trade balance, due to the increase in imports of machinery and intermediate consumer goods.
Meanwhile, the Monetary Policy Committee decided last week to “increase the reserve ratio for foreign currency liabilities by 500 basis points to 27 percent with effect from the start-up period starting on 7 September.”
A measure aimed at reducing the impact of dollarization on the economy but also start preparing the economy for the coming moments of large foreign currency inflow following the Final Investment Decisions of megaprojects that will exploit the existing natural gas in Mozambique.