The Bank of Mozambique (BoM) announced that physical money circulating in the country increased in October for the sixth consecutive month, to 67.4 billion meticals (one billion dollars). According to the institution, this is the highest figure since the beginning of the year.
The central bank clarified that money in circulation has already grown by 6.6 per cent since May, recalling that in January 2024 it was close to 63.2 billion meticals.
Withdrawing money from circulation is a common practice of contractionary monetary policy, reducing the money supply, normally used by central banks to contain price rises. For several months now, Mozambique has recorded year-on-year inflation below 3% (2.84% in November), after closing 2023 at 5.3%, below the peak of almost 13% in July 2022.
On 16 June, the Bank of Mozambique announced the introduction of a new series of metical notes and coins, which will circulate alongside those issued since 1 July 2006, Lusa reported.
‘Central banks tend to review their banknotes and coins in circulation every five years, so that they adapt to new trends in design, security and other contextual elements,’ explained BoM governor Rogério Zandamela.
According to him, ‘the theme of the 2024 series of metical banknotes and coins preserves the tradition of praising the values of our cultural, historical and wildlife heritage’.
‘The new series, called 2024, was launched on Metical Day and maintains the current six bank notes. The 1000, 500 and 200 metical denominations are on paper substrate, and the 100, 50 and 20 metical denominations on polymer substrate,’ explained Zandamela.
As for the coins, the 20 and five cent denominations will be discontinued, with the ten, five, two and one metical denominations remaining, as well as the 50, ten and one cent denominations.
‘The new metical banknotes and coins will circulate at the same time as the series of banknotes and coins issued since 1 July 2006, which also continue to be legal tender and have full and unlimited release power within national territory,’ said the governor.
