INSUBCONTINENT EXCLUSIVE:
The Monetary Policy Committee of the Bank of Mozambique (CPMO) recently announced a 75 basis point reduction in its benchmark interest rate,
the MIMO rate, bringing it down from 15% to 14.25%.This marks the fourth rate cut this year, starting from 17.25% in January
The annual inflation rate dropped to 3% in June from 3.1% in May.Underlying inflation, excluding volatile items like fruit and vegetables,
also remains low.The stability of the Mozambican currency, the metical, and previous CPMO measures have contributed to this positive outlook
natural gas (LNG), grew by 2.3% in the first quarter of this year.Including LNG, the growth rate rises to 3.2%
However, the CPMO warns of continued pressure on domestic public debt, which now stands at 377.9 billion meticais (about $5.9 billion).This
represents an increase of 65.6 billion meticais since December 2023
Chang, currently on trial in New York for conspiracy to commit money laundering and fraud, has returned $7 million in bribes from the Abu
Dhabi-based Privinvest Group.This money is now in the custody of the Bank of Mozambique, awaiting the outcome of ongoing lawsuits in the
London High Court.In a related development, Judge Robin Knowles ruled that Privinvest should pay Mozambique around $2.3 billion in
compensation.However, Privinvest plans to appeal, raising doubts about its ability to pay
economic stability hinges on the careful management of monetary policy, public debt, and legal challenges.As Mozambique navigates these
