Macroeconomic Forecast Mozambique

The metical has slowly appreciated in recent weeks after the currency found a base around the MZN31.00/US$ area. Currently trading at MZN30.00/US$, we anticipate a gradual appreciation of the currency over the forecast period as a strong domestic economy, coupled with political stability and a relatively benign inflation environment will bode well for investor inflows. That said, we expect the central bank will continue to intervene in the forex market in order to weaken the currency. We see the metical appreciating to MZN25.00/US$ by year-end.

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