20 Centavos – Mozambique

In 1961, Mozambique was a Portuguese overseas province, and its currency situation was entirely dictated by Lisbon. The official currency was the Portuguese escudo (PTE), which circulated at par with the Mozambican escudo (MZE). This system was managed by the Bank of Portugal, with the Bank of Angola (Banco de Angola) authorized to issue notes for Mozambique. There was no independent monetary policy; the colony's financial system was an extension of Portugal's, designed to facilitate trade and resource extraction for the benefit of the metropole.

Economically, the currency regime supported a colonial export-oriented economy. Mozambique's primary exports were agricultural commodities like cotton, cashews, sugar, and tea, alongside minerals. The fixed exchange rate and integrated financial system ensured that profits from these sectors were easily repatriated to Portugal. Furthermore, the escudo's peg to gold via the Bretton Woods system linked Mozambique to international trade, but its internal economy was heavily segmented, with a vast majority of the indigenous population operating outside the formal monetary system in a subsistence or forced-cultivation context.

Politically, this currency integration was a tool of colonial control, reinforcing Lisbon's authority. However, it existed against a backdrop of rising anti-colonial sentiment. The founding of the Frente de Libertação de Moçambique (FRELIMO) in 1962, just a year later, would soon initiate an armed struggle for independence. The impending conflict would eventually disrupt the colonial economic model, but in 1961, the monetary landscape remained one of enforced stability, entirely subservient to Portuguese interests and masking the deep economic inequalities that fueled the growing resistance.