Maputo, May 25, 2026 (Lusa) - Bank of Mozambique data show that the mandatory reserves of Mozambique's banks grew 7.5% during the first quarter of 2026 to 241.872 billion meticais (€3.256 billion).

The institution's latest statistical report shows that commercial bank mandatory reserves at the central bank reached a record 291.457 billion meticais (€3.923 billion) in December 2024, immediately before the central bank eased restrictions in January 2025.

The reserve volume has grown since a sharp drop at the end of 2025.

The Bank of Mozambique set mandatory commercial bank reserves at 10.5% in local currency and 11% in foreign currency at the beginning of January 2023.

The central bank increased these rates twice during the first six months of that year to "absorb excessive liquidity in the banking system, which could generate inflationary pressure", it explained at the time.

The last of these increases occurred in June 2023, pushing bank reserves to historic levels of 39% for local currency deposits and 39.5% for foreign currency.

The volume of bank reserves at the central bank increased by nearly 400% by the end of 2024 compared to the end of December 2022, when they stood at 62.1 billion meticais (€836 million).

Business leaders in Mozambique had insisted since 2024 that the central bank needed to ease foreign currency mandatory reserve requirements due to a shortage of foreign currency in the domestic market.

The central bank took this decision only on 27 January 2025, when the Bank of Mozambique's Monetary Policy Committee (CPMO) decided to cut mandatory reserve requirements to 29% for local currency and 29.5% for foreign currency.

The CPMO, which meets every two months, has scheduled its next meeting for Wednesday, 27 May, in Maputo.

PVJ/LYT // ADB.

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