Economy

The official currency is the New Metical (as of February 2013, 1 USD is roughly equivalent to 30 New Meticals), which replaced old Meticals at the rate of a thousand to one. The old currency will be redeemed by the Bank of Mozambique until the end of 2012. The US dollar, South African rand, and recently the euro are also widely accepted and used in business transactions. The minimum legal salary is around US$60 per month. Mozambique is a member of the Southern African Development Community (SADC). The SADC free trade protocol is aimed at making the Southern African region more competitive by eliminating tariffs and other trade barriers. The World Bank in 2007 talked of Mozambique’s ‘blistering pace of economic growth’. A joint donor-government study in early 2007 said ‘Mozambique is generally considered an aid success story.’ The IMF in early 2007 said ‘Mozambique is a success story in Sub-Saharan Africa.’ Yet, despite this apparent success, both the World Bank and UNICEF used the word ‘paradox’ to describe rising chronic child malnutrition in the face of GDP growth. Between 1994 and 2006, average annual GDP growth was approximately 8%, however, the country remains one of the poorest and most underdeveloped in the world. In a 2006 survey, three-quarters of Mozambicans said that in the past five years their economic position had remained the same or become worse.