Difference between currency depreciation and currency appreciation?
Answers
Answer:
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. Currency appreciation usually causes domestic inflation to fall.
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Answer:
Difference between Currency Depreciation and Currency Appreciation
Currency Depreciation:
Currency Depreciation:Currency Depreciation refers to decrease in the value of domestic currency in terms of foreign currency. It makes the domestic currency less valuable and more of it is required to buy the foreign currency.
Currency Appreciation:
Currency Appreciation:Currency Appreciation refers to increase in the value of domestic currency in terms of foreign currency. The domestic currency becomes more valuable and less of it is required to buy the foreign currency.
Explanation: