Abstract
The history of financial institutions in decolonising countries and newly independent states, especially in Africa, shows the political contentious nature of control over financial institutions, especially the central bank. This article investigates the particular circumstances around the emergence of a central bank in Mozambique: how local conditions influenced the shaping of new financial institutions in Mozambique. The question is: How did an independent central bank emerge in Mozambique after independence? The article explains the impact of the metropolitan identity of Portuguese financial institutions in Mozambique, the political economy of the new political leadership and finally the formation of a central bank.