is the basic monetary unit of which African country?
The strong appreciation of the metical
pushed government debt down to 99.7% of GDP (85% FC-denominated) in 2017, from 117.1% in 2016.
(31) In July 2017, the exchange rate was 60 Metical
to one dollar.
Before the depreciation of the metical
[the local currency] we had a balance sheet of over $200m, now it's around $150m.
The Angolan kwanza and Mozambican metical
were both among the 10 biggest depreciating currencies in the world in 2016, losing 18.9% and 33.2% of their value against the US dollar respectively.
Finally, the higher purchasing power of the metical
makes the wages more attractive to these migrants, who return to Malawi and use them there.
Already the Mozambican economy is adjusting to this situation, with the doubling of the metical
per US dollar since 2014 (a depreciation that the Mozambique Central Bank did not act to prevent), a compression in imports (particularly of consumption goods), policy measures that enforced cuts in public expenditure and investment, and slower economic growth, due to constrained aggregate demand.
The debt overhang stocks are currently estimated at around 85 per cent of the GDP; a commodity slump has reduced export revenue with the resultant sharp depreciation of the metical
; that also increased domestic prices as well as the debt repayment costs.
The debt crisis and aid suspension has hit Mozambique hard, with its currency, the metical
, losing nearly 40 percent against the dollar since January and economic growth slowing to below 4 percent.
The ongoing government debt scandal and ensuing deterioration in investor sentiment will see inflation remain high over 2016, as the metical
continues to depreciate.
Although import growth will decelerate in Mozambique in 2016, further depreciation of the metical
will see the current account deficit deepen for the second successive year.
SATURDAY'S SOLUTION: acme; amice; calm; calmest; came; camel; case; cast; caste; castle; cease; ceil; celesta; celt; cist; cite; claim; clam; clast; cleat; clematis; climate; clime; eclat; elastic; elect; emetic; ileac; lace; laciest; laic; mace; macle; malice; mascle; mastic; melic; mescal; mesic; metic; metical
; mica; scale; scam; scat; sect; select; sice; slice; talc; telic; TIMESCALE.