The Mozambican Metical (MZN) is the official currency of Mozambique, a country located on the southeastern coast of Africa. 

Mozambique is known for its stunning beaches, rich culture, and diverse wildlife. 

The Metical is essential for daily transactions and business operations in the country.

Read on to know more about Metical currency just you wish to travel or to do an exchange.

What is the Mozambican Metical (MZN)?

The Mozambican Metical is abbreviated as MZN and is symbolized by MT. 

The currency is issued and regulated by the Bank of Mozambique, which manages the monetary policy of the nation. 

The Metical serves as the medium of exchange for all kinds of goods and services in Mozambique, making it a critical part of everyday life for its citizens.

History of the Mozambican Metical

The Metical was first introduced in 1980 as part of Mozambique’s effort to create a national currency after gaining independence from Portugal in 1975. 

The name “Metical” comes from the Arabic word “mītqal,” which refers to a weight used for measuring precious metals. 

Initially, the Metical replaced the Portuguese escudo at a rate of 1 Metical for 12 escudos.

Over the years, the Metical has gone through several changes, especially during periods of economic difficulty and hyperinflation. 

In 2006, the country introduced a new Metical, referred to as the New Metical, to replace the old currency at a rate of 1 New Metical = 1,000 Old Meticals. 

This change aimed to simplify transactions and stabilize the economy.

Denominations of Mozambican Metical (MZN)

The Mozambican Metical is divided into 100 centavos. However, you will not see centavos in circulation as frequently due to inflation and changes in the economy. Coins are available in denominations of 1, 2, 5, 10, 20, and 50 centavos, as well as 1, 2, 5, and 10 Meticals. The coins feature symbols and designs that represent Mozambique’s heritage and wildlife.

Banknotes come in various denominations: 20, 50, 100, 200, 500, and 1,000 Meticals. 

Each banknote has distinct designs showcasing national landmarks, cultural elements, and important figures in Mozambique’s history.

Exchange Rate of Mozambican Metical

The exchange rate of Mozambican Metical can fluctuate daily based on market conditions and the economy. This are popular exchange rate of MZN

• 1 USD = MZN 63
• 1 EUR = MZN 69
• 1 GBP = MZN 26
• 1 NGN (Nigerian Naira) = MZN 0.012
• 1 ZAR (South African Rand) = MZN 1.14

Exchange rates vary based on economic factors such as inflation and trade balances. 

Economy and Challenges

Mozambique’s economy relies heavily on agriculture, natural resources, and tourism. 

Key exports include agricultural products like cashews, sugar, and cotton, as well as natural resources like coal and natural gas. 

The country has a rich biodiversity, attracting tourists to its beautiful beaches and wildlife reserves.

Despite its potential, the Metical faces challenges, including inflation and economic instability. 

Factors such as drought, political unrest, and reliance on foreign investment can create fluctuations in the currency’s value.

The government works to strengthen the economy through various initiatives, including investment in infrastructure and education. 

These efforts aim to promote economic growth and stabilize the Metical for everyday use.

Conclusion

The Mozambican Metical (MZN) plays a vital role in the economy and daily life of Mozambique. 

Since its introduction in 1980, it has evolved to meet the needs of the country. 

Managed by the Bank of Mozambique, the Metical comes in various denominations, making it accessible for everyday transactions.

As Mozambique continues to develop, the Metical remains crucial for both local and international trade. 

Despite challenges such as inflation and economic fluctuations, the Metical serves as a stable currency for the people of Mozambique, supporting their transactions and financial activities.