A fall in the exchange rate is known as depreciation in the case of a floating exchange rate regime like the one in Mozambique (as opposed to a fixed exchange rate regime, where devaluation is referred to). Mozambique's floating exchange rate adjusts to a
daily basis (sometimes only in fraction of Metical) and it can appreciate (gain value) or depreciate (lose value). When it depreciates, the Metical is worth less compared to other countries' currencies, namely the US dollar.
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