Mozambique's central bank has issued new banknotes and coins, replacing the metical currency that has been in circulation for the past 18 years. The new metical notes and coins will come into circulation from June 16, 2022, the Bank of Mozambique said in a statement.
The new notes come in denominations of 10, 20, 50, 100, 200, and 500 meticais, while the coins are in denominations of 5, 10, 20 and 50 meticais. The new notes feature images that represent Mozambican culture, history and environment, while enhanced security features have been added to deter counterfeiting.
The Bank of Mozambique said the new currency is meant to improve the efficiency of the payment system and ensure greater stability of the national currency. The central bank hopes the new notes and coins will last longer than the current ones. The new banknotes also incorporate features to help the visually impaired identify and distinguish between denominations.
The central bank has conducted an extensive public awareness campaign ahead of the currency changeover. Commercial banks have been distributing the new banknotes and coins to their customers in recent weeks in preparation for the June 16 launch date. The Bank of Mozambique has advised the public to use up their old currency before the end of the year, after which the old notes and coins will no longer be accepted.
The introduction of the new currency is an important step for the Bank of Mozambique to modernize the country's monetary policy tools. The visually enhanced security features on the new notes and coins should help combat counterfeiting which has been an issue with the current currency. The new denominations provide more options for the public, especially the lower denominations which will be useful for day to day transactions.
Overall, the new metical currency aims to improve the financial system in Mozambique by:
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Increasing the security and durability of the notes and coins in circulation
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Providing more denominations for the public to use
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Enhancing the central bank's ability to implement monetary policy
The Bank of Mozambique has done a good job preparing the public for this changeover through their awareness campaigns. With only a few months left until the old currency is no longer accepted, the public should take this time to use up any remaining old notes and coins and familiarize themselves with the features and denominations of the new currency. A smooth transition to the new metical will be important for the functioning of the Mozambican economy.
