The Pataca is Macau’s official currency. The currency board system in Macau issues Macanese Pataca, which are 100% backed by the foreign exchange reserves of the Hong Kong Dollar. In addition, the Monetary Authority of Macau is responsible for issuing and exchanging patacas against demand for the Hong Kong Dollar at fixed rates without limits.
Economy
Macau’s economy has had vigorous growth in recent years, due mainly to its growing transportation, tourism, and gaming sectors.
According to Foreign Direct Investment, Macau’s casino industry is making Macau the world’s largest gaming center.
Macau’s growing casinos, together with China’s decision to loosen travel restrictions, has boosted Macau’s transportation and tourism industry.
In 2005, Macau’s customary textile trading industry has gradually shifted to China, due to the expiry of the Multi-Fiber Agreement.
The tariff-free movement of goods from Macau to China was made possible by a Closer Economic Partnership Agreement signed by both countries.
History
In 1894, the Pataca was introduced in Macau and Portuguese Timor, but was not an official currency.
Until the end of the 19th century, the only circulating coins used in Macau were British silver trade dollars of Hong Kong silver, Mexican Dollars, and the fractional coinage of Canton and the Straits Settlements.
In 1901, the Macau government decided to launch Macau’s official currency. The Banco Nacional Ultramarino was granted the right to issue legal banknotes in Patacas.
On January 27, 1906, Pataca banknotes in denominations of 1, 5, 50, and 100 were introduced, and the Pataca became the only official currency in Macau.
The first Macau coinage was introduced in 1952. A year later the last coins minted by East Timor were released.
