Question

Difference between appreciation and depreciation of domestic currency

Answer 1

Answer:

Both appreciation and depreciation measure the value of one or more currencies against one or more other currencies. The value of things can rise or fall. A rise in value is called appreciation. ... To find the difference between appreciation and depreciation of a currency, let's start with how they are alike.

Explanation:

Answer 2

Answer:

The value of currencies is determined by comparing them to others, and it can rise or drop. Appreciation is an increase in the value of a currency, while depreciation, or devaluation, is a fall in value. Both processes affect domestic inflation, which is the continuous rise in the price of goods and services.