What is Mozambique Metical (MZM/MZN)
The Mozambique metical (MZM) is the national international cash the African nation of the Republic of Mozambique. The international cash’s name, the metical, comes from the Arabic word mithqal, a unit of weight and any other name for the gold dinar coin that spotted use throughout a large number of Africa until the nineteenth century. In 2006, the country re-valued and re-issued the “new metical”, underneath the international cash symbol MZN and retired the MZM totally in 2012.
As of March 2021, 1 MZN is equal to roughly US $0.013.
Key Takeaways
- The Mozambique metical is the respected international cash of the Republic of Mozambique.
- The metical (MZM) was once as soon as first issued in 1980 when it repaced the Mozambican escudo following its independence from Portugal.
- On account of continued high inflation and monetary struggles, the new metical (MZN) phased out the MZM starting in 2006 by way of 2012.
Figuring out the Mozambique Metical
Mozambique’s central monetary establishment, the Banco de Moçambique, issues and regulates the Mozambique Metical (MZM). The metical has had two issuances. The main modified the Mozambican escudo at par on June 16, 1980.
The plural of metical is meticais. The Mozambique metical subdivides into 100 centavos is represented by the use of the brand MTn or MT. Banknotes circulated in denominations of 50, 100, 500, and 1,000 meticais. Money had denominations of 50 centavos, 1, 2.5, 10, and 20 meticais.
Hyperinflation resulted in rapid devaluation of the MZM, resulting in a brand spanking new issue of banknotes in 2003 that had higher denominations, reaching up to 200,000 and even 500,000 meticais. The country’s financial machine continued to battle, and by the use of 2005 the metical was once the lowest-valued international cash on this planet when put next to the United States greenback (USD).
Persevered downward pressures burdened the redenomination of the Mozambique metical at a value of 1000:1 on July 1, 2006. To compensate for the lower value, new banknotes in denominations of 20, 50, 100, 200, 500 and 1,000 meticais and money in denominations of 1, 5, 10, 20, 50 centavos and 1, 2, 5 and 10 meticais circulated. The ones was once known as the “new metical”, with the international cash symbol MZN. Until December 31, 2006, the country transitioned, and each and every the earlier and new notes were prison refined. Right through the conversion, the new international cash was once as soon as in the neighborhood abbreviated as MTn on the other hand has since steadily returned to MT. By means of December 31, 2012, the former meticals were no longer redeemable for brand new meticals and no longer used in trade.
On October 1, 2011, Banco de Moçambique issued a brand spanking new number of banknotes that were similar to the 2006 assortment. Alternatively, the new notes had enhanced safety features to prevent counterfeiting. The doorway sides of the bills all function an image of Samora Moisés Machel, Mozambique’s first President after independence in 1975. The other choices images of local flora and fauna, similar to giraffes, lions, and elephants.
Inside the years between 2007 and 2017, the new metical hit new file lows in opposition to the U.S. greenback. It reached an all-time low of 78.45:1 in October 2016. This drop in value was once as soon as due in part to the discovery of prior to now hidden loans granted to a couple of state-owned companies. The decline led the World Monetary Fund (IMF) to halt value vary support.
The Mozambique Financial machine
Mozambique won independence from Portugal in 1975 after ten years of sporadic fighting. The more youthful African nation won support from Cuba and the Soviet Union on the other hand fell into a chronic and bloody civil fight that may span 15 years. The ones long war-torn years presented regarding the collapse of the country’s financial machine.
The Republic held loose elections in 1993, and by the use of 1995 over 1.7 million refugees returned space from neighboring nations where that they’d sought asylum during the civil wars. Mozambique continues to teeter on the brink of fight as there is also so much dissatisfaction with the government and continuing charges of government corruption.
Mozambique’s financial machine has struggled to achieve safe enlargement given that metical’s redenomination in 2006. In line with 2019 World Monetary establishment data, the Republic of Mozambique professional an annual gross house product (GDP) enlargement of 2.3% with an inflation value of 2.8% for the one year. Mozambique corporations readily accept the USD, British pound, euro (EUR), and South African Rand (ZAR).
