Maputo, Aug. 21, 2026 (Lusa) - Cash in circulation in Mozambique rose by 4.6% in June to just under 76.5 billion meticais (€1.044 billion), marking the third consecutive month of growth after the first quarter of the year.
According to the latest statistics from the Bank of Mozambique, compiled by Lusa on Friday, this monetary aggregate stood at slightly less than 75 billion meticais (€1.023 billion) in December 2025, before falling to about 69 billion meticais (€942 million) in January this year.
The trend stabilised in February and March, when the money in circulation in Mozambique (Monetary Aggregate 3) stood at 67.6 billion meticais and 67.4 billion meticais, respectively. In April, however, there was a reversal, with a rise to 70.8 billion meticais (€966 million), followed by further growth in May, to 73.1 billion meticais (€998 million), and again in June.
Withdrawing cash from circulation is one of the monetary policy tools used by central banks to reduce liquidity in the economy and curb inflationary pressures. Conversely, an increase in cash in circulation tends to reflect greater availability of currency in the economy.
On 29 July, the Bank of Mozambique kept its benchmark interest rate, the MIMO, at 9.25%, acknowledging a reduction in liquidity in the national currency and a short-term rise in inflation, whilst forecasting that inflation would return to single figures in the medium term.
«This decision is underpinned by the reduction in liquidity in national currency within the banking system, resulting from the increase in the reserve requirement ratio last May, notwithstanding the prevalence of high risks and uncertainties associated with inflation projections,» said the governor of the Bank of Mozambique, Rogério Zandamela, at the time.
The Monetary Policy Committee (CPMO), which meets every two months, adopted this position at its meeting in Maputo and decided to keep the rate unchanged, as had already been the case in March and May, following a cycle of 12 consecutive cuts that began in January 2024.
In May, the CPMO also decided to raise the reserve requirement ratio for liabilities in national currency from 29% to 39%, with the aim of absorbing excess liquidity in the banking system and reducing potential inflationary pressures. The ratio of liabilities in foreign currency remained at 29.5%, a level the Bank maintained at the July meeting.
In the outlook published following that meeting, Zandamela pointed to a short-term rise in inflation and a medium-term slowdown, after annual inflation stood at 7.5% in June, compared with 7.2% in May.
«In the short term, prices are expected to continue rising, reflecting the indirect effects of higher domestic liquid fuel prices and imported inflation. However, in the medium term, inflation is forecast to fall to single figures, driven, amongst other factors, by the prospect of continued exchange rate stability and a slowdown in energy and food prices,» said the governor.
PVJ/ADB // ADB.
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