What currency does Macao use?

The currency of Macao is the Macao pataca.

MOP (MOP; Macao pataca; Currency code: MOP; ; Currency symbol: MOP $) is the legal tender of People's Republic of China (PRC) and China Special Administrative Region. Monetary policy in Macao is managed by the Macao Monetary Authority. 1 mop can be divided into 100 cents (Avos). The Portuguese name of Macao pataca comes from the silver dollar "eight Mexican reais" which is widely used in Asia.

In Macao and Hong Kong, the pataca is usually called "Portuguese currency". Many people think that "Portuguese currency" is an inappropriate name for Macao currency, which is colonial, and that the word "Portuguese currency" is the abbreviation of "Portuguese currency". This is a wrong understanding. In fact, "Portuguese currency" is the transliteration abbreviation of the English word "pataca" for Macao. This has nothing to do with Portugal's own currency (escudo was used before Portugal joined the euro zone), and it has nothing to do with Macao before and after the handover. The Macao pataca is a unique monetary unit of Macao pataca, which is not widely used like the US dollar.

Extended data

China's silver dollar and copper coin were once used in Macau. During the Ming Dynasty (1553), Portuguese colonists, relying on their world-leading naval power, constantly explored the east, expanded their territory, and soon occupied Macau, the bridgehead coveted by China. After a long time, the small fishing village of Macao began to make trouble. Colonists, adventurers, businessmen, prostitutes and gamblers flocked here, and various transactions gradually flourished. There are many kinds of currencies in circulation. The early currency in circulation was Mexican Eagle Ocean. Since then, a variety of currencies have circulated at the same time, but mainly China silver ingots and silver dollars, as well as silver cents and silver coins, followed by foreign silver dollars.

Portuguese colonists, from the first day of bribing Ming Dynasty officials to board Macao Island, plotted a strategic attempt to occupy Macao permanently. It was under the guidance of this strategic attempt that they soon realized that issuing currency was a symbol of sovereignty, and they wanted to take full control of Macau's economy by abolishing China's currency. From 65438 to 0887, Macao became a colony of Portugal. Starting from 190 1, the Portuguese government began to change the circulation of China silver dollars in Macau. 1On September 4th, 905, the Portuguese government authorized its national bank, Atlantic Bank, to issue MOP banknotes in Macau.

The issue of MOP is supported by 100% foreign exchange reserves. Note-issuing banks must pay the equivalent of HK$ to the Macao Monetary Authority at the fixed exchange rate of HK$ to MOP 1.03 as the legal reserve for issuing banknotes. With the support of 100% reserve, the Macao Monetary Authority ensured the full convertibility of the Macao pataca to the reserve currency (Hong Kong dollar), thus establishing the linked exchange rate between the Macao pataca and the Hong Kong dollar. Since the Hong Kong dollar is linked to the US dollar, the Macao dollar is indirectly linked to the US dollar, and the exchange rate is about one dollar to eight Macao dollars.

Reference source: Baidu Encyclopedia -MOP