Inflation Nation

Our local currency, the Mozambican Metical (Mt), has taken a serious slide since our arrival. When we got in country we could buy a dollar for just under 30 Mts, but our money’s value has fallen, pushing the dollar all the way into the mid-30’s. The last time we asked the money changers that hang around the border control they wanted 37 Meticais to the dollar. This would be great news if we had dollars, like everyone assumes we do, but we receive our stipend in the depreciating local currency, just like Mozambican teachers. It’s unclear how much of this change is due to Obama’s stronger dollar and how much to Mozambique’s own financial shortcomings, but the net result for us has been continuously rising prices in site. Sugar for example just jumped from 25 Mts a kilo to 30Mts, it’s hard to find eggs for 5 Mts anyone, everyone wants 6, and our bread keeps getting smaller, reflecting the climbing price of wheat flour. Even Malawi’s currency has appreciated. We could buy 1000 Kwachas for 175 Mts and now we need to spend 200 to get the same amount, so all our cheap deals across the border, like peanut butter and toilet paper, are that much more expensive. Luckily we don’t really have to worry since we’ll always have food to eat, but our neighbors feel the pinch and national estimates show already high levels of hunger and malnutrition on the rise.