Mozambique currency (Metical)

grubby23

Hi all,

I just read that Mozambique are doing pretty well at the moment and that there currency belongs to the strongest one in the world. Has anyone an idea how we could profit from this trend? Could we invest somehow in the Mozambique stock exchange.

Even better, is there a way to have a bank account denoted in Metical and even get some interest rate on the deposit?

Thanks!

Jegersmart

Hi

Please see this link to the graph vs. GBP.

http://www.xe.com/currencycharts/?from=MZN&to=GBP&view=5Y

It is quite true that the trend has been positive since the middle of 2010 and has not yet challenged the highs of late 2008 early 2009. Judging by the hsitory, perhaps there is a case for money flowing this way (in to the Metical) at times when there is uncertainty and fear - however the history available is not sufficient in my view to make this type of decision. I think I will keep an eye on this one in the future to evaluate whether it coudl be used as a marker or indicator of stock market movements.
I am not sure how easy it is to gain exposure to the Metical currency in an efficient way as a retail investor/speculator. From an equities point of view, I remember looking at Mozam in I think the beginning of 2008 or so - and my view at the time was that access is a problem, lack of physical infrastructure and legislation for trading was evident and therefore not really feasible in my view. I am not sure this has changed, I find it difficult to find information on Mozam equities in detail so for me I would not be considering this at the current time. I try to avoid investing in or trading anything I do not have reliable information on, don't understand or any mix of these.

I did find this in relation to tax, which may help you find out what could be available as a cash depositor - however I have no reliable information on guarantees or how the system works there:

http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Tax/Intl%20Tax%20and%20Business%20Guides/2011/dtt_tax_highlight_2011_Mozambique.pdf

All imho, dyor ofc

J