What Is the MOP (Macanese Pataca)?
The Macanese pataca (MOP) is the professional foreign exchange of Macau. It is forever presented with the emblem MOP$, as in MOP$100. Macau was once up to now a Portuguese colony, and become a special administrative space (SAR) of China in Dec. 1999.
No longer like most currencies, the pataca is not administered by means of a central monetary establishment. As a substitute, it is administered by means of two industry banks, the Banco Nacional Ultramarino and the Monetary establishment of China. It is pegged to the Hong Kong dollar (HKD) at a suite price of one Hong Kong dollar to no less than one.03 Macanese patacas. As of December 2020, 1 MOP (and 1 HKD) is equal to US $0.13.
Key Takeaways
- The Matacase pataca (MOP) is the professional foreign exchange of Macau, a special administrative space of China.
- While Macau was once up to now a Portuguese colony, it was once transferred to China in 1999, alternatively assists in keeping a large stage of financial autonomy.
- Its value is de facto sponsored by means of foreign currency echange echange reserves of the Hong Kong Dollar (HKD) and take care of a peg to the HKD of 1:1.03.
Working out the Macanese Pataca
The Macanese pataca was once first presented in 1894, when it modified the Portuguese precise at a price of 450 to no less than one. Each pataca is subdivided into 100 gadgets, known as avos. The determine pataca is a Portuguese word that kind of translates into “steel coin”. It was once extensively used to generically describe money used right through Portuguese colonies.
When it was once first issued for flow in Macau inside the past due 1800s, there was once no single foreign exchange used in Macau. As a substitute, quite a few currencies have been used, necessarily probably the most outstanding being the Mexican peso, which was once referred to as the “pataca mexicana.” In that sense, the earliest use of the period of time “Macanese pataca” in reality referred to Mexican pesos that have been in use in Macau.
By means of 1901, efforts had begun to create a single, universally approved foreign exchange in Macau. To that end, the Banco Nacional Ultramarino—based totally in Lisbon in 1864—was once authorized to distribute banknotes denominated in pataca. From this stage onward, the pataca received a brand spanking new identification break free the Mexican pesos (or “Mexican patacas”) that were given right here in the past. For sure, the Mexican pesos and all other foreign currency echange have been banned shortly after the issuance of the ones new pataca banknotes.
No longer like most currencies, in which metal coinage usually predates paper banknotes, the Macanese pataca did not download physically money until 1952. This is largely because of Chinese language language money from the neighboring Canton Province had already been extensively used right through Macau, without reference to the federal government’ makes an try to remove foreign currency echange from flow.
In recent years, the value of the pataca is 100% sponsored by means of the foreign currency echange echange reserves of the HKD. Its stylish banknotes are available in denominations of 10, 20, 50, 100, 500, and 1,000 patacas, while its money are available in denominations of 10, 20, and 50 avos. Higher money, in denominations of one, two, 5, and 20 patacas, are also in flow.
Between 2009 and 2019, the MOP’s trade price has held moderately forged against the U.S. dollar (USD), purchasing and promoting in numerous between 7.80 and 8.10 MOP in step with USD. Its inflation price has been relatively subdued throughout that time period, averaging fairly beneath 4% in step with year.
Macau as a Specific Administrative House
Macau functions similarly to Hong Kong, as an SAR of China. This designation means Macau is a moderately self enough territory that operates beneath the “One Country, Two Systems” thought. This protection lets in Macau to take care of autonomy and control over most of its governmental and fiscal movements.
Along with Hong Kong, Macau is regarded as one among China’s elementary gateways to global business. Its provider sector dominates the local monetary gadget, representing kind of 95% of Macau’s gross house product (GDP). A wealthy space, Macau is known as the “Las Vegas of Asia” and rakes in more than US$50 billion in GDP, largely fueled by means of the tourism, taking part in, and service industries. Macau is regarded as to be a tax haven, mainly for electorate of Asian and Oceanic global places.
