Overview

The Mozambican metical is the national currency of Mozambique and is issued by the Bank of Mozambique (Banco de Moçambique). Its common abbreviation is MT (sometimes written Mt) and its ISO 4217 code for the current series is MZN. The metical is subdivided into 100 centavos, though low-value centavo coins have limited circulation when inflation reduces their purchasing power.

History and redenomination

The metical was introduced after independence to replace the colonial currency and became Mozambique's official unit in 1980. Decades of inflation led to a redenomination in 2006: a new series of meticais was issued and three zeros were removed from prices, simplifying accounting and daily transactions. The earlier currency series is often identified by the ISO code MZM.

Coins, banknotes and design

The currency is issued in both coins and banknotes. Coins cover smaller, everyday values while banknotes are used for larger amounts. Banknote and coin designs typically include national symbols, historical and cultural references, and elements of Mozambique's natural heritage. Modern banknotes incorporate security features such as watermarks, security threads and raised printing to guard against counterfeiting; the central bank updates series periodically for security and durability.

Economic role and usage

The metical is used for wages, retail trade, taxation and domestic contracts. Its external value varies with macroeconomic factors including inflation, fiscal and monetary policy, the balance of payments and commodity price movements that affect Mozambique's exports. In some tourist areas and for certain large transactions, foreign currencies such as the US dollar may be accepted alongside the metical, but the metical remains the legal tender.

Notable points

  • The metical exists in two main forms: the original series (1980–2006) and the redenominated series introduced in 2006.
  • ISO currency codes changed from MZM for the old metical to MZN for the new series.
  • The Bank of Mozambique is the sole issuer and manager of the currency and implements monetary policy intended to maintain price stability.