The Mozambican Metical (MZN) is the official currency of Mozambique, a country located in southeastern Africa. The Metical was introduced in 1980, replacing the Mozambican Escudo.
In 2006, Mozambique revalued the currency, introducing a new Metical (MZN) to replace the old Metical (MZM) at a rate of 1,000 MZM to 1 MZN.
The Bank of Mozambique, the country’s central bank, is responsible for issuing and managing the Mozambican Metical.
Subdivisions and Denominations
The Mozambican Metical is subdivided into 100 smaller units called centavos.
Coins are issued in denominations of 1, 5, 10, 20, and 50 centavos, as well as 1, 2, 5, and 10 Meticais.
Banknotes are available in denominations of 20, 50, 100, 200, 500, and 1,000 Meticais.
Economy
Mozambique has a mixed economy that relies on agriculture, industry, and services sectors.
Agriculture remains the backbone of the economy, with the majority of the population engaged in subsistence farming.
The country is also endowed with significant natural resources, such as coal, natural gas, and minerals, which have attracted substantial foreign investment.
Mozambique’s economy has experienced periods of strong growth, driven by infrastructure development, foreign investment, and the expansion of the extractive industries.
However, the country still faces challenges such as high poverty rates, income inequality, and inadequate infrastructure.
Exchange Rate System
The Mozambican Metical operates under a floating exchange rate system, which means its value relative to other currencies fluctuates based on supply and demand in the foreign exchange market.
The Bank of Mozambique may intervene in the market to manage the exchange rate and maintain stability, particularly in relation to major trading partners’ currencies like the US Dollar, the Euro, and the South African Rand.
Challenges and Prospects
Mozambique faces several economic challenges, including a high dependence on agriculture, vulnerability to external shocks such as fluctuations in commodity prices, and high levels of public debt.
The country is working to address these challenges through economic diversification, investment in infrastructure, and efforts to improve governance and fiscal management.
Mozambique’s long-term economic prospects are tied to its ability to manage its natural resources, diversify its economy, and attract foreign investment.
Additionally, the country must address issues such as high poverty rates, food insecurity, and environmental degradation to ensure sustainable development.
Summary
In summary, the Mozambican Metical is the official currency of Mozambique, and its management falls under the responsibility of the Bank of Mozambique.
The currency is subdivided into centavos, with coins and banknotes issued in various denominations.
Mozambique has a mixed economy with significant contributions from the agriculture, industry, and services sectors.
The country operates under a floating exchange rate system and faces economic challenges such as dependence on agriculture, vulnerability to external shocks, and high levels of public debt.