Mozambique Domestic Borrowing Jumps to ~49% of Central Debt: Currency and Banking Strain Deepen

Q2 2026 reporting shows Mozambique’s public and guaranteed debt rose to about 75.9% of GDP, driven by a sharp increase in domestic borrowing that lifted central government domestic debt share to roughly 49.1%. The composition shift toward central‑bank financing and higher domestic servicing raises inflationary and currency pressures by increasing monetary financing risk and fiscal dominance. Domestic rates and the belly of the local curve will carry apparent upward pressure as the central bank and Treasury crowd the domestic market for financing.