currency depreciation

Currency depreciation

A decline in the value of one currency relative to another currency. Depreciation occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency.

Currency Depreciation

A decrease in the value of a currency with respect to other currencies. This means that the depreciated currency is worth fewer units of some other currency. While depreciation means a reduction in value, it can be advantageous as it makes exports in the depreciated currency less expensive. For example, suppose one unit of Currency A is worth one unit of Currency B. If Currency A depreciates such that it becomes worth half of one unite of Currency B, then exports denominated in Currency A are only half as expensive when trading in a Currency B market. See also: Floating currency.

currency depreciation

References in periodicals archive ?
The report referred to the flotation, saying that despite improving the conditions in Egypt, the effect of the currency depreciation will weigh on firm's margins.
Of note, the stock market's performance returned twice as much as the entire depreciation, which resulted in investors preserving all their capital during this period of sharp currency depreciation.
However, any local currency depreciation will not be good for clients who are importers.
Conditions for Eurobond issuance may continue to prove challenging, as a slightly more favorable commodity price environment is offset by tightening financing conditions and currency depreciation amid U.
Though measures had recently been taken to address these trends, including some currency depreciation, tax rebates on exports and import duties on non-essential goods, these proved insufficient thus far to arrest the ongoing decline in reserves, Fitch said.
In Uzbekistan, exchange rate liberalization in September 2017, which resulted in a significant currency depreciation, will help improve competitiveness, enhance market efficiency, and economic growth.
The FPCCI president advises the SBP to intervene and check the currency depreciation.
Fitch opined it was still uncertain how much currency depreciation, the central bank would permit and although 'the SBP has indicated its commitment to allowing the market to determine the value of the rupee, with intervention limited to smoothing operations.
The budget deficit grew rapidly and borrowing on the international markets both contributed to a four-fold increase in government debt, while expansionary policies contributed to a sharp currency depreciation and a significant loss of international reserves since 2013.
Oil stocks stood strong throughout the day with investors not only tracking gains in global crude prices but also currency depreciation.
S&P could revise the outlook to AaAaAeAeAaAaAeA@"stableAaAaAeAeAaAaAeA@" if plan to gradually reduce government debt-to-GDP is derailed by fiscal slippages, high borrowing costs, or larger currency depreciation than expected, or if foreign exchange reserve levels were to fall significantly.
In September, the IMF praised Egypt's efforts in implementing its economic reform programme despite seeking waivers for missing some targets in June and a deeper-than-expected currency depreciation, but inflation remains the main risk for stability.