Key facts
- Mozambique's government has signaled a willingness to devalue its currency.
- The potential devaluation aims to boost exports.
- A risk of higher import costs and inflation exists.
- Authorities are preparing for an IMF delegation in June.
- Early repayment of USD 630 million in IMF debt has occurred.
Mozambique's government has indicated a willingness to devalue its currency, according to news reports. This potential policy shift could provide a boost to the country's exports, though it carries the risk of increasing import costs and fueling inflation. The authorities are reportedly preparing for a delegation from the International Monetary Fund (IMF) that is scheduled to visit in June. This preparation follows a notable policy adjustment, which included the early repayment of USD 630 million in debt owed to the IMF. This repayment has helped to revive stalled negotiations with the international financial institution.