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Mozambique’s Metical expected to devalue and end year at 74 per U.S. dollar – Fitch Solutions

Fitch Solutions issued a report yesterday in which it posits that it expects the Mozambican currency to depreciate and settle at 74 meticais per dollar by the end of the year, after a significant appreciation in recent weeks, among the largest in the world.“We anticipate that the metical will depreciate from 55 per dollar to 74 meticals per dollar by the end of this year, following a strong appreciation recorded in March and April “, reads a comment on the evolution of the Mozambican currency.Fitch analysts consider that “the risks of inflation will decrease during the rest of 2021, reducing the need for further interventions by the Central Bank and thus allowing the metical to resume the trend of gradual depreciation”.The metical has appreciated significantly, from 75 meticais per dollar on 1 January, to the highest value of the last five years on April 15, when it only took 55.1 meticais to buy a dollar, “becoming the second most-valued currency since the beginning of the year, worldwide”, reads report.

Source: Further Africa

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