The financial system evolvement put forward to the Banco de Moçambique, as Central Bank entity, the challenge to introduce foreign exchange and monetary policy management instruments more adequate to the dynamics and transformations of the markets.
In equity markets, the stock prices of non-financial firms have also declined sharply since early May, while (implied) stock market volatility rose to a peak in July and has remained high. These developments reflect market expectations of a deteriorating corporate earnings outlook, increased financing costs and high and volatile commodity prices.