Mozambican Metical (MZN)

Basic Concepts of Mozambique New Meticals

The Mozambican Metical Nuevo (currency code: MZN) is the legal tender of the Republic of Mozambique, issued and managed by the Bank of Mozambique. The name of the currency is derived from the famous Metical mountain range in southeastern Africa, and the symbol is "MT", which is commonly used in everyday writing to distinguish between the old and new versions, "MTn".

Countries of use

The New Metical is only used in Mozambique. As a sovereign currency, it is pegged to major international currencies such as the U.S. dollar and the euro, and should be exchanged through banks or authorized institutions for local tourism, trade and financial activities.

Units and Denominations

One New Metical is equal to 100 cents (Centavos). Currently circulating banknotes come in denominations of 20, 50, 100, 200, 500 and 1,000 Nueva Métrica, while coins are available in denominations of 1, 2, 5, 10 Nueva Métrica, and 1, 5, 10, 20, and 50 cents. The banknotes are designed with security fibers and holographic stripes, and bear national symbols such as the national emblem and national heroes.

Historical background

The currency has undergone two major changes: in 1980, when the Portuguese colonial escudo was first replaced by the "Metical", and in 2006, when hyperinflation led to the introduction of a currency reform that introduced the "New Metical" at a ratio of 1:1,000. This reform has been effective in stabilizing the national economy, and in recent years the annual inflation rate has been kept at a single-digit level through monetary policy regulation.