Republic of Mozambique: Selected Issues

March 7, 2018

Preview Citation

Format: Chicago

Republic of Mozambique: Selected Issues, (USA: International Monetary Fund, 2018) accessed December 21, 2024

Also available in: português

Summary

This Selected Issues paper documents the main features of the current monetary policy regime in Mozambique, describe ongoing structural policy changes announced by the central bank, and analyze the main challenges facing the central bank in the process to modernize its monetary policy framework. Recognizing the signaling value of interest rates to anchor inflation expectations and help influence market interest rates, the paper usefully focuses on the needed reforms to enable the central bank to successfully replace monetary aggregates by interest rate as the main instrument of monetary policy. Deepening the understanding of the obstacles on the way to a smooth monetary transmission, further building the central bank inflation forecasting capacity, strengthening the coordination between fiscal and monetary policies, enhancing central bank communications and modernizing the legal framework to ensure central bank operational autonomy are essential to the success of the new monetary regime. Importantly, the presence of a committed and strong technical team and a reform-oriented management should greatly facilitate the implementation of these vital central bank reforms.

Subject: Banking, Climate change, Corruption, Crime, Environment, Inflation, Labor, Natural disasters, Prices, Wages

Keywords: Central bank, Climate change, Climate change effect, Corruption, Corruption weakness, CR, Credit policy, Financing strategy, Global, Inflation, Interest rate, ISCR, Monetary policy, Mozambique, Natural disasters, Risk profile, SOEs, Southern Africa, Sub-Saharan Africa, Wage bill, Wages

Publication Details

Pages:

79
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/066
Stock No:

1MOZEA2018002
ISBN:

9781484345634
ISSN:

1934-7685

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