Mozambique New Metical

Overview

The new Metical is the official currency of Mozambique. It is subdivided into 100 centavos. In the southern part Mozambique, US Dollars, the South African Rand, and the British Pound Sterling are also used for business transactions.

Economy

• Mozambique is part of the Southern African Development Community, whose trading protocols aim to make the Southern African region more competitive by removing trade barrier such as tariffs.
• In 2007, the World Bank recognized the economic growth of Mozambique. The World Bank and UNICEF describe the country as a paradox, given its increasing, chronic child malnutrition in spite of its GDP development.
• From 1994 to 2006, the average annual GDP reached 8%, yet the country was still on the list of the poorest and most undeveloped countries in the world.
• According to a 2006 study, three-quarters of Mozambique’s population stated that in recent years their economic status has stayed the same or gotten worse.

History

• In 1980, the Metical replaced the Escudo at par. The country then experienced a period of hyperinflation, leading to a devaluation of the currency. Mozambique re-valued the new Metical in 2006 at a rate of 1,000:1.
• On July 1, 2006 a new series of coins and banknotes was issued. The transitional phase, during which both old and new Metical were used, ended on December 31, 2006.
• The old Metical currency is still accepted and redeemed by the Bank of Mozambique for a period of six years, ending on December 31, 2012.