The Monetary Policy Committee noticed that the international strengthening of the USD, coupled with a seasonal higher demand for foreign currencies put some pressure on the domestic foreign exchange market.
In January of 2014, net foreign exchange reserves decreased by USD 90.5 million to USD 2.905 billion. In the same period, the Metical fell 1.7 percent against the USD, after strengthening 0.1 percent in the previous month.
The Bank of Mozambique also decided to intervene in the interbank markets in order to ensure that the stock of base money does not surpass 448843 million Meticais, at the end of February of 2014. It also decided to maintain the Standing Lending Facility interest rate at 8.25 percent; maintain the Standing Deposit Facility interest rate at 1.5 percent, and the Reserve Requirements Ratio unchanged at 8.0 percent.