currency depreciation(redirected from Depreciation (currency))
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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.
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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.
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currency depreciationsee DEPRECIATION 1.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005