Macroeconomic Forecast Mozambique

Having threatened in April its November 2005 all-time high of MZN29.05/US$, trading up to MZN28.60/US$, the metical has recovered 9.6% to just below MZN26.20/US$ in early June. The unit is now only 4.2% weaker than its level at the start of the year. With the country seeing robust growth in the face of the global slowdown, and with foreign donor support set to continue, the outlook of further strength as commodity prices recover, if not back towards the MZN24.50-23.80/US$ range seen for most of 2008.

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