Mozambican Metical (MZN)
Tue, Apr 15The Mozambican Metical (MZN) serves as the official currency of Mozambique, a nation situated in southeastern Africa. Introduced in 1980, the Metical replaced the Mozambican Escudo. In 2006, Mozambique underwent a currency revaluation, launching a new Metical (MZN) to supersede the old Metical (MZM) at a conversion rate of 1,000 MZM to 1 MZN. The Bank of Mozambique, the central bank of the country, is tasked with issuing and managing the Mozambican Metical.
The Mozambican Metical is divided into 100 smaller units known as centavos. Coins are available in denominations of 1, 5, 10, 20, and 50 centavos, along with 1, 2, 5, and 10 Meticais. Banknotes can be found in denominations of 20, 50, 100, 200, 500, and 1,000 Meticais.
Mozambique operates a mixed economy that encompasses agriculture, industry, and services. Agriculture remains the cornerstone of the economy, with a significant portion of the population engaged in subsistence farming. The country is rich in natural resources, including coal, natural gas, and minerals, which have drawn considerable foreign investment. Mozambique's economy has seen periods of robust growth, fueled by infrastructure development, foreign investment, and the growth of the extractive industries. Nevertheless, the nation continues to grapple with challenges such as high poverty rates, income inequality, and insufficient infrastructure.
The Mozambican Metical functions under a floating exchange rate system, meaning its value in relation to other currencies varies based on supply and demand in the foreign exchange market. The Bank of Mozambique may intervene in the market to regulate the exchange rate and ensure stability, particularly concerning the currencies of major trading partners like the US Dollar, Euro, and South African Rand.
Mozambique confronts several economic hurdles, including a heavy reliance on agriculture, susceptibility to external shocks such as commodity price fluctuations, and elevated public debt levels. The country is striving to tackle these issues through economic diversification, infrastructure investment, and initiatives to enhance governance and fiscal management. Mozambique's long-term economic outlook is closely linked to its capacity to manage its natural resources, diversify its economy, and attract foreign investment. Additionally, the nation must address challenges like high poverty rates, food insecurity, and environmental degradation to achieve sustainable development.
In conclusion, the Mozambican Metical is the official currency of Mozambique, managed by the Bank of Mozambique. The currency is divided into centavos, with various denominations of coins and banknotes available. Mozambique's mixed economy significantly relies on agriculture, industry, and services. The country operates under a floating exchange rate system and faces economic challenges, including agricultural dependence, vulnerability to external shocks, and high public debt levels.
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