In 2024, the US dollar depreciated significantly against many of the world’s most important currencies, essentially due to the expectation of the first interest rate cut by the Federal Reserve since the start of the covid-19 pandemic (rates were cut by 0.5% in September 2024).
Lower interest rates can reduce the dollar’s appeal compared to other currencies, especially those of economies with higher interest rates, and this is the case in Mozambique where, even so, in the last year the national currency has remained relatively stable against the dollar, at around 63 meticals per unit of US currency.
