IMF Working Papers

Identifying Determinants of FX Stability in Mozambique

BySamuel Mann, Alexis Meyer-Cirkel

November 8, 2024

More Formats on IMF eLibrary
Order a Print Copy

Preview Citation

Format: Chicago

Samuel Mann, and Alexis Meyer-Cirkel. "Identifying Determinants of FX Stability in Mozambique", IMF Working Papers 2024, 233 (2024), accessed 12/15/2025, https://doi.org/10.5089/9798400292828.001

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

In early 2021, as monetary policy tightening reversed a multi-year trend of Metical depreciation, the exchange rate vis-à-vis the US dollar de facto stabilized. This report discusses elements of the market structure and other drivers of Metical stability since mid-2021. The particularities of Mozambique, a small open economy with an export sector that has a strong foreign currency cost structure, provide important insights into that discussion, as does the structure and development of the Foreign Exchange (FX) market.

Subject: Currencies, Currency markets, Exchange rates, Financial markets, Foreign exchange, Imports, International trade, Money

Keywords: Central Bank Policy, cost structure, Currencies, Currency markets, development of the foreign exchange, Exchange Rate Regimes, Exchange rates, Foreign Exchange Stability, FX Market Structure, FX stability, FX supply, Global, Imports, Market Intervention, market participant, Mozambique, MZN exchange rate fluctuation, reference rate

You May Also Be Interested In...

Enhancing Tax Capacity: Revenue Gains from Strengthening Tax Administration

10/24/2025

The Managing Director's Global Policy Agenda, Fall 2025: Navigating a World In Transition

10/16/2025

Mauritius: Technical Assistance Report-Report on the National Accounts and Balance of Payments Mission (March 24–28, 2025)

10/10/2025

Vietnam: Technical Assistance (TA) on Developing the Forecasting and Policy Analysis System (FPAS) at the State Bank of Vietnam (SBV)

10/9/2025

Nepal: Sixth Review Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Nepal

10/6/2025