Difference between revaluation and appreciation of currency
Answers
Appreciation is when the value of a currency goes up in comparison to other currencies. Revaluation is an official rise in the price of the currency within a fixed exchange rate system. ... The diference is that depreciation occurs in a floating exchange rate whereas devaluation happens in a fixed exchange rate.
Answer:
Currency appreciation and revaluation are two connected but different ideas.
Revaluation of Currency
The act of formally changing a currency's value in reference to other currencies or gold is known as revaluation. Based on the economy and the relative strength of the currency on global markets, a nation's central bank usually performs this. Revaluation raises a currency's value, making it more valuable in comparison to other currencies. This can help a nation's exports by making them more affordable to overseas consumers, but it can also cause inflation and drive up the price of imported goods.
Appreciation of currency
On the other hand, appreciation describes the organic rise in a currency's value that takes place in response to market conditions. This may be the result of various circumstances, including a rise in currency demand, economic stability, or an improvement in the nation's economic performance.
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