What is Currency Depreciation?

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Accepted Answer

Currency depreciation is the loss of value of a country's currency relative to one or more foreign reference currencies, typically occurring in a floating exchange rate system due to market forces like supply and demand, often making imports more expensive and exports more competitive.

Currency Depreciation

What is Currency Depreciation?

What are the primary economic and political factors that cause a currency to depreciate?

How does currency depreciation impact a country's trade balance, inflation, and foreign debt obligations?

What monetary and fiscal policy tools are used by central banks and governments to manage currency depreciation?

What is the key difference between currency depreciation and currency devaluation?

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