Macanese pataca
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Macanese pataca 澳門圓 (Chinese) pataca macaense (Portuguese)
ISO 4217 Code	MOP
User(s)	Macau
Inflation	4.9%
Source	Direcção dos Serviços de Estatística e Censos, Q2 2007
Pegged with	Hong Kong dollar = MOP$1.03
Subunit
1/100	avo
Symbol	MOP$
Plural	patacas (Portuguese only)
avo	avos (Portuguese only)
Coins
Freq. used	10, 50 avos, MOP$1, MOP$5
Rarely used	20 avos, MOP$2
Banknotes	MOP$10, MOP$20, MOP$50, MOP$100, MOP$500, MOP$1000
Monetary authority	Monetary Authority of Macao
Website	www.amcm.gov.mo

The pataca (traditional Chinese: 澳門圓; ISO 4217 code: MOP) is the currency of Macau. It is subdivided into 100 avos (Cantonese: 仙; sin), with 10 avos called ho (毫) in Cantonese. The abbreviation MOP$ is commonly used.

Macau adopts the so-called currency board system under which the legal tender, Macanese pataca, is 100 percent backed by foreign exchange reserves, in this case currently the Hong Kong dollar. Moreover, the currency board, Monetary Authority of Macao (AMCM), has a statutory obligation to issue and redeem pataca on demand against the Hong Kong dollar at a fixed exchange rate and without limit.^[1]

Etymology

The name "pataca" was derived from the then popular silver coin in Asia, the Mexican peso (eight reales), known in Portuguese as the pataca mexicana.^[1] The Chinese name for the currency is yuan (圓), which is the same word for Chinese yuan, New Taiwan dollar and Hong Kong dollar. People in Hong Kong or Macau, however, usually refer the Macanese pataca as "Portuguese money" (葡幣), probably because Macau was once a Portuguese colony.^[2]

History

The pataca was introduced in 1894 as a unit of account. It was initially equivalent to the Mexican peso, Spanish dollar and Hong Kong dollar, and replaced the Portuguese real at a rate of 1 pataca = 450 réis.^{citation needed} In 1905, the Macau Government granted the Banco Nacional Ultramarino (BNU; 大西洋銀行) the monopoly right to issue banknotes in pataca denominations. The first batch of one-pataca and five-pataca banknotes was circulated in Macau on 27 January the following year.^[3]

Until 1935, the pataca was pegged to the Hong Kong dollar at par.^{citation needed} A succession of pegs to the Portuguese escudo followed, before the Hong Kong dollar was readopted as the peg.

In 1980, the Macau Government set up the Issuing Institute of Macau (Instituto Emissor de Macau; abbr. as IEM), which was given the monopoly right to issue pataca notes. The BNU became the IEM's agent bank and continued to issue banknotes.^[3] On agreement with the BNU on October 16, 1995, the Macau branch of Bank of China (中國銀行澳門分行) became the second note-issuing bank. The authority to issue patacas was transferred to the Monetary Authority of Macau.

Coins

Coins were not issued for use in Macau until 1952, with the 20 cent coin of Canton Province circulating. In 1952, bronze 5 and 10 avos, cupro-nickel 50 avos and .720 fineness silver 1 and 5 patacas were introduced. Nickel-brass replaced bronze in 1967, including the last issue of 5 avos. Nickel replaced silver in the 1 pataca in 1968. In 1971, a final (.650 fineness) silver issue of 5 patacas was produced.

Brass 10, 20 and 50 avos and cupro-nickel 1 and 5 patacas were introduced in 1982. The 20 avos and 5 patacas became dodecagonal in 1993 and 1992, respectively, whilst a bimetallic 10 patacas was introduced in 1997 and a cupronickel 2 patacas in 1998. Coins are issued by the Monetary Authority of Macao.

Banknotes

Both sides of 100 patacas issued by BNU on 1992-07-13

On January 27, 1906, 1, 5, 50 and 100 pataca notes were introduced by the Banco Nacional Ultramarino. These were followed in 1907 by 10 and 25 pataca notes. In February 1920, 5, 10 and 50 avo notes were added.

In 1923, the Banco Vui Hang introduced 10 pataca notes which stated that they were backed by Cantonese 20 cent coins^[4]. These notes were followed until 1934 by cashier's cheques issued by various banks in denominations of 1, 5, 10, 50, 100, 200, 400, 800 and 1000 dollars, presumably equivalent to the pataca. In 1944, further cashier's cheques were issued, denominated 1000 yuan and NC$5000.

The BNU issues were augmented by 1 and 20 avo notes in 1942. In 1944, 500 pataca notes were introduced. Denominations below 10 patacas were replaced by coins in 1952. The 25 pataca note was discontinued after 1958.

On August 8, 1988, BNU issued a 1000 pataca banknote, the highest value banknote yet. Because 8 in Chinese (Ba) is similar to "getting rich" (Fa; 發), this unique date, which occurs only once per century, gives the note a special meaning. Another feature is the replacement of the Coat of arms of Portugal with BNU's logo, symbolizing the fact that Macau would become part of the People's Republic of China. In 1995, the Banco da China introduced notes in denominations of 10, 50, 100, 500 and 1000 patacas. Both the BNU and Banco da China introduced 20 pataca notes in 1996.

Banknotes are currently issued in denominations of 10, 20, 50, 100, 500 and 1000 patacas. Banknotes are issued by the Banco Nacional Ultramarino and the Bank of China. The current series of BNU banknotes was issued in 2005, while the Bank of China notes were last issued between 1995 and 2003. The physical sizes of the banknotes are "coincidentally" the same as that of Hong Kong banknotes. On December 20, 1999, the day Macau was retroceded to China, banknotes of all values (except for 10 patacas) by both banks were reissued with that date.

The 2005 series of BNU was printed by Royal Joh. Enschedé, a security printing firm in the Netherlands.

Historical exchange rate

The following figures are included as a guide to the movements of the pataca against the pound sterling and the United States dollar:

Despite the fact that the pataca is the official currency of Macau, most of the money in circulation in the territory is actually Hong Kong dollars. Patacas accounted for only 29.9% of Macau's money supply at the end of 1998.

The exchange rate is pegged and is approximately MOP$103 for HK$100 as of February 2004. For United States dollars, to which the Hong Kong dollar is in turn loosely pegged, the exchange rate is around 8 patacas to 1 US dollar. While it is possible to exchange patacas in Macau, it is difficult, if not impossible, to do so outside the territory, even in Hong Kong.

Despite the pataca being the legal tender of Macau, the Hong Kong dollar is preferred for most commerce. Some casinos go as far as rejecting bets from people equipped with the MOP currency. These people may overcome this by exchanging their patacas into Hong Kong dollars at the nearest currency exchange agency. The Hong Kong dollar and renminbi are generally accepted throughout Macau from casinos to restaurants.

As there are currently no restrictions on the import or export of either local or foreign currency into or from Macau, visitors can change their currency in hotels, banks and authorized exchange dealers located all around the city. There are also 24-hour exchange counters at Macau International Airport (Taipa Island) and at the Lisboa Hotel (Macau Peninsula) for customers if they want to change their currency into patacas outside working hours.

See also

• Economy of Macau
• Portuguese Timorese pataca

References

External links

• Don's World Coin Gallery - Macau
• Ron Wise's World Paper Money - Macau ^{Mirror site}
• Tables of Modern Monetary Systems by Kurt Schuler - Asia ^{Mirror site}
• The Global History of Currencies - Macau
• Global Financial Data data series - Macau Pataca
• Global Financial Data currency histories table ( Microsoft Excel format)
• (Chinese) (Portuguese) (English) Banco Nacional Ultramarino (Macau)
• (Chinese) (Portuguese) (English) Banknotes issued by the Banco Nacional Ultramarino.
• (Chinese) (English) Bank of China (Macau)
• (Chinese) (English) SinoBanknote
• (Chinese) City guide with coins and banknotes