Despite increased depreciation of the Mozambican currency, the metical, against the US dollar since the start of the year, the
The Standing Deposit Facility (the rate paid by the central bank to the commercial banks on money they deposit with it) remains at 1.5 per cent, and the Compulsory Reserves Coefficient - the amount of money that the commercial banks must deposit with the
The Committee also decided that the central bank will intervene in the inter-bank markets in order "to ensure an adequate supply of foreign currency" and to guarantee that the monetary base does not exceed 44.884 billion meticais (about
Due largely to seasonal factors, the monetary base fell by 2.418 billion meticais (5.1 per cent) in January, and stood at 45.119 billion meticais at the end of that month.
The statement noted that, according to the consumer price index for the three major cities (
Preliminary figures on the debts of private companies to the Mozambican banking system show that they increased by over 1.2 billion meticais (0.8 per cent) in December.
The growth in the private sector debt over 2013 as a whole was 28.7 per cent.
The commercial banks have continued to ignore all the interest rate signals form the central bank, and charge their clients extortionate rates. Thus the average interest rate charged by the banks to their clients in December, for loans maturing in a year, was 20.22 per cent, only 0.03 per cent lower than in November.
As for exchange rates, the metical continued to depreciate against the US dollar and appreciate against the South African rand.
But the rand has continued to weaken, and so by the end of January the metical was quoted at 2.76 to the rand. Against the rand, the metical had risen in value by 3.2 per cent in January, and by 18.6 per cent over the past year.
The largest single factor in the decline was the sale by the central bank of
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