Metical depreciates against euro

The Mozambican metical depreciated against the euro last week, with the European currency coming into the country at an average of 67.96 meticais, up 1.20 meticais from the previous week.In turn, the euro was selling for 69.29 meticais, up 1.23 meticais, according to weekly averages calculated by Lusa from Bank of Mozambique data.The purchase price of the euro ranged between 67.26 and 68.34 meticais, while the selling price ranged between 68.57 and 69.68 meticais.Last week was a day short thanks to the Independence Day holiday falling on a Sunday, and so being celebrated on Monday, June 26.The devaluation of more than one metical last week has wiped out the slight appreciation of the previous two weeks. The Mozambican currency is nevertheless still displaying a trend of appreciation, after falling in September 2016 to an all-time low of 88 meticais to the euro.Meticais average reference exchange rates of the euro.

Day … Buy … Sell

30 June … 68,34… 69.68

29 June … 68,28 … 69.63

28 June … 67,95 … 69.29

27 June … 67.26 … 68.57

26 June… holiday

Average … 67,96 … 69,29

The Bank of Mozambique set the reference rate in the national financial market for July at 27.75 percent, holding the index for the second consecutive month, according to information distributed to the press in Maputo.The central bank also held the weighted average rate for international monetary market operations and the single index rate at 21.75 percent.The creation of the single index (prime) rate was agreed between Bank of Mozambique and the Mozambican Association of Banks on May 17 as a measure to eliminate the proliferation of different interest rates in the country.All credit operations are now based on the single rate, plus a spread according to the risk analysis of each contract.“What we have just witnessed is an important step towards crystallising the reforms introduced more than 20 years ago when it comes to determining interest rates,” Rogério Zandamela, governor of the central bank, said when the measure was announced in May. The creation of the single rate is in line with international practice, which imposes a uniform reference in the calculation of interest rates for credit operations.

President Filipe Nyusi will today inaugurate three new buildings in Maputo housing the Bank of Mozambique’s headquarters and various other units.A press release received by Noticias reveals that the three new buildings cover a total of 87,500 square meters and well lend a new image to central Maputo, where they are located.“Two of the three buildings are located between Avenues 25 de Setembro and Samora Machel, and the third one on Banco de Moçambique Street,” the release reads. The work was carried out by Portuguese contractor Teixeira Duarte and contains security and technological features that will guarantee the handling and storage of money according to international security standards. The 1960s building which previously served as the central bank’s headquarters was thought to be ill-suited to current times.