New family of the metical introduced.

The so-called new family of the metical (metical da nova famlia) becomes legal tender as of 1 July. On that date, new coins and notes will come into circulation alongside the existing currency and shops and services must display their rates in old and new meticais. There will be a six-month transition period while the old notes and coins are gradually withdrawn; as of 1 January 2007 the old metical will no longer be legal tender, although it will be possible to exchange old coins and notes for new ones at any bank until the end of the year. Thereafter, any remaining old coins and notes will have to be exchanged at the Bank of Mozambique directly.

The new coins and notes are the result of a currency reform aimed at simplifying the metical by removing three digits; so 1,000 old meticais are worth 1 metical in the new family. There are six new bank notes 1,000, 500, 200, 100, 20 and 20 meticais all of which bear the portrait of the independence leader and first Mozambican president, Samora Machel. They also carry images of the countrys wildlife. The new coins are worth ten, five, two and one metical; there are also smaller coins worth 50, 20, 10, 5 and 1 centavo.