IMF warns of falling foreign exchange reserves in Mozambique
By the AFREEQUE newsroom, based on Club of Mozambique
The IMF warns of a deterioration in Mozambique’s current account and foreign exchange reserves, driven by rising fuel prices and foreign currency shortages. These pressures are weighing on public finances and reducing the government’s room to respond to external shocks, according to the IMF’s resident representative in Maputo, Olamide Harrisson.
The International Monetary Fund (IMF) expects Mozambique’s current account balance and foreign exchange reserves to deteriorate, notably due to rising international fuel prices and difficulties accessing foreign currency, Olamide Harrisson, the IMF’s resident representative in Mozambique, said on Wednesday. This development is reducing the government’s ability to respond to new external shocks.
Fuel imports are increasing demand for foreign currency and could intensify pressure on reserves and public finances, according to the IMF. Mozambique is among the 20 sub-Saharan African economies whose terms of trade are expected to deteriorate in 2026, while their average growth is expected to slow from 5% in 2025 to 4.6% in 2026. By contrast, the IMF expects growth to accelerate from 4.3% to 4.5% for the 22 economies whose terms of trade are expected to improve.
