Question

Explain how ‘Depreciation of currency’ promotes exports of a country?​

Answer 1

Depreciation of your currency would mean foreigners need to pay now lesser amount of their currency to buy the goods your country exports. i.e the foreign price of your exports decreases and their demand increases.

Answer 2

☆hey!!☆

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When price of foreign currency in terms of domestic currency rises in the foreign exchange market it is termed as depreciation of domestic currency.

• Any depreciation of home currency results in increase in exports of the country since it increases the global competitiveness of the goods.

☆°example:-°☆

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• foreign countries can purchase more quantity of goods and services with the same amount of foreign currency from the domestic country. As a result exports of the domestic country rise.

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☆hope help u!☆