Mozambique is a southern African nation with offshore marine parks and popular beaches like Tofo. The Mozambique metical (MZM) is its national currency. The Banco de Moçambique regulates and issues the country's currency. There have been two issues for the metical. The first, on June 16, 1980, ousted the Mozambican escudo at par. The Mozambique metical is expressed with the symbol MTn or MT and subdivides into 100 centavos. Coins were circulated in denominations of 50 centavos, 1, 2.5, 10, and 20 meticais while banknotes were in denominations of 50, 100, 500, and 1,000 meticais.
Due to hyperinflation, the MZM was devalued, and in 2003, there was a new issue of banknotes with higher denominations that reached up to 200,000 and even 500,000 meticais. Mozambique's economy continued struggling and on July 1, 2006, the downward pressures pushed the redenomination of the Mozambique metical at a rate of 1000:1. New coins in denominations of 1, 5, 10, 20, 50 centavos and 1, 2, 5, and 10 meticais and banknotes in denominations of 20, 50, 100, 200, 500, and 1,000 meticais, which became known as the ""new metical,"" circulated to compensate for the lower value. The country transitioned up to December 31, 2006, with both the old and new notes in legal tender. The old meticals can no longer be redeemable and used in exchange for new meticals by December 31, 2012. Banco de Moçambique, on October 1, 2011, issued a new series of banknotes similar to the 2006 series.
In 1975, Mozambique obtained independence from Portugal after ten years of sporadic combat. The nation received support from the Soviet Union and Cuba but fell into a lengthy and bloody civil war for 15 years. These long war-torn years caused the collapse of Mozambique's economy.
Free elections were held by the Republic in 1993, and by 1995 more than 1.7 million refugees returned home from neighboring countries where they had sought refuge during the wars. The country's economy has grappled with achieving steady growth since the redenomination of metical in 2006. Based on the 2019 World Bank data, the Republic of Mozambique saw an annual gross domestic product (GDP) growth of 2.3% with an inflation rate of 2.8% during the year. Mozambique businesses readily accept the euro (EUR), USD, South African Rand (ZAR), and British pound.