Posted in Finance, Accounting and Economics Terms, Total Reads: 305
Definition: MOP (Macanese Pataca)
MOP is an abbreviation for the currency of the special administrative region of Hong Kong, Macau called Macanese Pataca. It is split into 100 avos, and subsequently 10 avos are called ho. It is generally represented as MOP$.
Macau currently has a currency board system by which the legal tender, Macau pataca, is 100 percent funded by foreign exchange reserves, in this instance currently the Hong Kong dollar. Furthermore, the currency board, Monetary Authority of Macau (AMCM), has an obligation to issue and redeem the currency Macau pataca on demand in exchange of the Hong Kong dollar at a specified exchange rate and without limit. Macau's banknotes are not supplied by a central bank or monetary authority but are issued by two commercial banks, the Banco Nacional Ultramarino and the Bank of China. Because of Macau's Portuguese colonial past, banknotes are still printed in Portuguese as well as Chinese. Currently, banknotes are issued in 10, 20, 50, 100, 500 and 1000 denominations.
The pataca was originally pegged to the Hong Kong dollar at par, but after 1935 until 1976, it was decided to peg it to the Portuguese escudo. The peg finally returned to the Hong Kong dollar in 1977. Currently, Hong Kong Dollar = MOP$1.03. Even though the pataca is the legal tender of Macau, the Hong Kong dollar is virtually universally acceptable in the territory and most of the currency in circulation is actually Hong Kong Dollars, and in some cases, is also preferred to the Pataca, but refusal to accept pataca is prohibited.