In 2011 we expect that the key policies of the central bank, Banco de Moçambique (BDM), will be to restrain money supply growth and allow a gentle appreciation of the metical in order to check imported inflation, which has accelerated recently, in part because of the weakening of the currency. In 2012 the BDM is expected to try to keep the local currency steady, as further appreciation would undermine competitiveness. Although the BDM formally targets sustainable levels of monetary aggregates, policy will increasingly prioritise keeping inflation in check, even if this requires further strengthening of the metical.