Macau’s Pataca and identity

Abstract

Purpose

For over a 100 years, Macau’s Pataca has been tied to Macau’s identity, its independent financial existence and its links to the Lusophone world. Its role as a supporter of the Macau identity relies upon the strength and capabilities of its financial institutions, the Macau Monetary Authority and banking institutions that issue its currency (Banco Nacional Ultramarino and Bank of China). The paper aims to discuss the above issue.

Design/methodology/approach

The author uses statistics and data from the Macau Monetary Authority.

Findings

There are three possible scenarios that could emerge: first, retired in favor of the RMB, the HK dollar; second, maintained with its use expanding as Macau’s revenues and investment funds grow, or third, become a force for stronger economic cohesion and identity among the Lusophone nations.

Practical implications

Which of these scenarios will offer Macau the highest possibility of maintaining its international network of relationships and representation, diversifying its economy into new growth markets and playing a unique role in China’s twenty-first century destiny?

Originality/value

This paper studies a rarely discussed topic and focuses on a core component of Macau’s existence.

Citation

Spooner, P.B. (2015), "Macau’s Pataca and identity", Asian Education and Development Studies, Vol. 4 No. 4, pp. 423-433. https://doi.org/10.1108/AEDS-06-2015-0025