If Uganda devalues its shilling by 10 percent and Burundi devalues its franc by 5 percent, the shilling's exchange value appreciates 10 percent against the franc.

Question

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When Uganda devalues its shilling by 10 percent and Burundi devalues its franc by 5 percent, the shilling does not appreciate by 10 percent against the franc. The percentage change in exchange value cannot be directly inferred from the percentage devaluation of each currency without considering their initial exchange rates. The actual appreciation or depreciation would depend on the new exchange rates after devaluation.

If Uganda Devalues Its Shilling by 10 Percent and Burundi