The Bank of Mozambique is to withdraw from circulation damaged banknotes from the 2024 metical series, under new rules approved and announced by the central bank on Friday, 6 November.
In a notice cited by Lusa, the central bank said it has defined criteria to guide commercial banks and other financial institutions in identifying notes from the 2024 metical series that are fit or unfit for circulation. Under the circular, notes will be assessed on the basis of factors including dirt, discolouration, staining, graffiti, tears, holes, burns, shrinkage, excessive creasing, and loss of surface area.
The newly approved rules stipulate that notes bearing writing, drawings, stamps, or other markings that significantly alter their visual appearance are to be considered unfit for circulation. Notes with tears of four millimetres or more, holes exceeding six square millimetres, burns, heat-induced deformation, or those reconstructed using glue, adhesive tape, staples, or other materials must also be withdrawn.
Notes that are excessively crumpled, have suffered significant colour loss, or are missing portions beyond the limits set by the regulator will likewise no longer qualify to remain in circulation.
Conversely, notes with minor folds, bent corners, or light markings may continue to circulate, provided they retain the essential characteristics required for identification and verification of authenticity.
The circular also establishes rules for the valuation of mutilated banknotes, providing for full or partial reimbursement of face value depending on the area of the note preserved and the ability to confirm its authenticity. The new standards apply to the 2024 series, which was introduced in June of that year and is currently in circulation alongside earlier metical series.
According to the Bank of Mozambique's 2025 financial statements, the central bank spent 3,055 million meticais (€41 million) on the production of banknotes and coins that year, a decline of 13% from the 3,512 million meticais (€47.1 million) recorded in 2024, when the new currency family was launched.
"The newly approved rules stipulate that notes bearing writing, drawings, stamps, or other markings that significantly alter their visual appearance are to be considered unfit for circulation."
The central bank's annual report also notes that banknotes and coins in circulation totalled 74.9 billion meticais (€1.005 billion) at the end of 2025, down 12.2% from 85.3 billion meticais (€1.145 billion) recorded a year earlier, reflecting an apparent normalisation following the surge associated with the introduction of the new series.
At the launch of the new currency, the then-governor of the Bank of Mozambique, Rogério Zandamela, explained that central banks tend to review banknotes and coins in circulation periodically to bring them into line with new design and security requirements and other contextual factors.
According to Zandamela, the 2024 series retained the 1,000-, 500-, and 200-metical notes in paper and the 100-, 50-, and 20-metical notes in polymer, while the 20- and five-centavo coin denominations were discontinued, with all remaining denominations kept in circulation.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=559225
