Physical money circulating in Mozambique increased by 3.3 per cent in April compared to the previous month, to 73,264 million meticals (1,062 million euros), according to data from an official report compiled on Tuesday 25 by the Lusa news agency.
The notes and coins in circulation in the country at the end of April also corresponded to the highest value since December, when 80,456 million meticals (1.166 million euros) circulated, according to a statistical report from the Bank of Mozambique.
In the year to date, money circulating in Mozambique grew by almost 9 per cent.
Withdrawing money from circulation is a usual practice of contractionary monetary policy, reducing the money supply, normally used by central banks to contain price rises. However, during this period, several problems were reported in the new Mozambican interbank system, whose migration began in 2023, with recurring difficulties in payments and cash withdrawals at ATMs.
Mozambique introduced a new series of metical notes and coins on 16 June, which will progressively replace those circulating since 2006, the central bank governor announced.
“Central banks tend to review their notes and coins in circulation every five years in order to adapt them to new trends in design, security and other contextual elements,” Rogério Zandamela explained in May, justifying the institution’s “decision to review the metical notes and coins”.
“The theme of the 2024 series of metical notes and coins keeps in mind the tradition of praising the values of our cultural, historical and wildlife heritage,” he said.
In a statement attended by the directors of the commercial banks operating in the country, the governor added that the new series, launched on the day of the metical – Mozambique’s currency was launched on 16 June 1975 – maintains the current six bank notes.
“The 1,000, 500 and 200 metical denominations on paper substrate, and the 100, 50 and 20 metical denominations on polymer substrate,” explained Rogério Zandamela.
As for the coins, the 20 and five cent denominations will be removed in the new series, “keeping the ten, five, two and one metical denominations, and 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 have compulsory legal tender status and full and unlimited release power within national territory,” added the governor.
Lusa
