Definition: The Mozambican metical (ISO currency code: MZN) is the official currency of the Republic of Mozambique, a country located on the southeastern coast of Africa.
Overview: The Mozambican metical has been the national currency of Mozambique since 1980, replacing the Mozambican escudo after the country gained independence from Portugal in 1975. The currency is issued and regulated by the Bank of Mozambique (Banco de Moçambique), the country's central bank. The metical undergoes periodic redenomination to address inflation; the most recent redenomination occurred in 2006, when the old metical (MZM) was replaced at a rate of 1 new metical (MZN) to 1,000 old meticais.
Etymology/Origin: The term "metical" originates from the Arabic word "mithqal," referring to a unit of weight historically used for gold in parts of Africa and the Middle East. The name was adopted during earlier periods of trade along the East African coast, where Arab merchants were active. Its use in Mozambique reflects historical commercial influences in the region.
Characteristics: As of the 2006 redenomination, the Mozambican metical is subdivided into 100 centavos, though centavo denominations are no longer used in everyday transactions due to low value. Banknotes are issued in denominations of 20, 50, 100, 200, 500, and 1,000 meticais. Coins circulate in 1, 2, 5, 10, and 20 metical units, with higher denominations of 50 and 100 meticais also existing as coins. The designs on the currency typically feature national symbols, historical figures, and regional wildlife, highlighting Mozambique’s cultural and natural heritage.
Related Topics:
- Economy of Mozambique
- Bank of Mozambique
- African currencies
- Portuguese colonial currency
- Inflation in Sub-Saharan Africa
- Redenomination of currency