METICAL RESULTS OF DEPRECIATION "PSYCHOLOGICAL EFFECTS" POST - ELECTION

The Governor of the Bank of Mozambique, Ernesto Gove said that this sharp depreciation of the metical, the national currency against the US dollar, the result of several factors including the "psychological" resulting from the post-election aftermath.Speaking today in Maputo, during the year-end toast with representatives of the institutions of the financial system, Gove said that to bring political and social instability elements, the aftermath post - election conveys nervousness and negative expectations."It transmits to the markets, nervousness and negative expectations regarding the maintenance of the pillars supporting macroeconomic stability, leading to some operators anticipate payments of imports, while exporters feed higher earnings expectations in a high depreciation of the currency environment" Gove said.Indeed, according to the governor, the Interbank Foreign Exchange Market data (MCI) for the closure last November show that the US dollar was quoted at 31.22 meticais, "which corresponds to a monthly depreciation, accumulated and annual metical 1 04; 4.24 and 4.31 percent, "respectively.However, the operations of commercial banks with economic operators and the general public is no record of a further depreciation of the metical, "a monthly variation of 3.78 percent and accumulated 13 percent, up to ten current December".'We must all work together to keep our country as a champion of lower inflation in the region and highlighted the stability and world economic growth, "said Ernesto Gove, a clear reference to all stakeholders, including politicians who express opinions that negatively influence the market .

The Bank of Mozambique put in the forex market, by 12 December, a total of 1,114 million dollars, against 615 million in the same period 2013, causing the balance of international reserves to settle at around 2.8 billion dollars ."In terms of gross reserves, this balance can cover about four months of imports of goods and non factor services, while excluding transactions of major projects," said Gove.The governor associated wear the reserves in 2014, with increasing making liquid fuels that the dynamics of the economy demand, including electoral character issues, pressures in anticipation of imports and currency fluctuations arising from "a stronger dollar in international market relative to other assets that are denominated in our international reserves (gold and Euro). "In his speech, Gove said that Mozambique have told, this year, with more - gains of transactions by some dealers who exploit mineral resources with non-resident companies, amounting to 520 million dollars, a sum which "allowed cushion the adverse impact on international reserves. "Even at the level of the external sector, the balance of payments data indicate that, despite the global economic environment present less favorable, with the fall of the main tradable goods prices, Mozambique remains a preferred destination of foreign direct investment, together with the projects to exploit the coal and hydrocarbons.The country received in the first nine months of this year, a flow of capital in the form of foreign direct investment nearly 3,316 million, compared with 4,885 million in 2013, most of which, 52 percent, for the major projects the extractive industry.