In this article, We learn about "Mozambican Metical (MZN)".Let's Go!
The Mozambican Metical (MZN) is the official currency of Mozambique, a country located in southeastern Africa. The Metical was introduced in 1980, replacing the Mozambique Escudo.
In 2006, Mozambique revalued its currency, introducing a new metical (MZN) to replace the old metical (MZM) at an exchange rate of 1,000 MZM to 1 MZN.
The Bank of Mozambique is the country’s central bank and is responsible for issuing and administering Mozambican meticals.
Segments and denominations
The Mozambique Metical is subdivided into 100 smaller units called cents.
Coins are issued in denominations of 1, 5, 10, 20 and 50 cents, and 1, 2, 5 and 10 meticais.
Banknotes are available in denominations of 20, 50, 100, 200, 500 and 1,000 meticais.
Economy
Mozambique has a mixed economy that relies on agriculture, industry and services.
Agriculture remains the backbone of the economy, with the majority of the population engaged in subsistence farming.
The country is also rich in natural resources such as coal, natural gas and minerals, attracting large amounts of foreign investment.
Mozambique’s economy has experienced a period of strong growth, driven by infrastructure development, foreign investment and the expansion of the extractive industry.
But the country still faces challenges such as high poverty rates, income inequality, and insufficient infrastructure.
Exchange rate system
The Mozambican metical has a floating exchange rate system, which means that its value relative to other currencies fluctuates based on supply and demand in the foreign exchange market.
The Bank of Mozambique may intervene in the market to manage and maintain stability in exchange rates, particularly in relation to the currencies of major trading partners such as the US dollar, the euro and the South African rand.
Challenges and prospects
Mozambique faces several economic challenges, including a high dependence on agriculture, vulnerability to external shocks such as commodity price fluctuations, and high levels of public debt.
The country is working to address these challenges through economic diversification, infrastructure investment, and improved governance and fiscal management.
Mozambique’s long-term economic prospects are tied to its ability to manage its natural resources, diversify its economy and attract foreign investment.
In addition, the country must address issues such as high poverty rates, food insecurity and environmental degradation to ensure sustainable development.
Summary
To summarize, the Mozambican metical is the official currency of Mozambique and its management is the responsibility of the Bank of Mozambique.
Currency is subdivided into cents, and coins and banknotes are issued in various denominations.
Mozambique has a mixed economy, with agriculture, industry and services contributing significantly.
The country operates a floating exchange rate system and faces economic challenges such as dependence on agriculture, vulnerability to external shocks, and high levels of public debt.
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