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 ?
Currency depreciation would have triggered a spike in inflation, given the large share of imported goods and services in the consumers' basket.
2015 was characterized by ongoing currency depreciation in Brazil, Ukraine and Russia.
4,113 crore was 35% lower YoY due to a steep fall in crude oil and metal prices and premia, partially offset by improvements in volumes and cost, supported by currency depreciation and District Mineral Foundation (DMF) write-back.
Currency depreciation against the dollar during 2015 has been an ongoing problem for the country's debt stock and burden.
Although we understand that a large portion of this foreign borrowing is with blue-chip Turkish corporates with stronger risk management practices and hard currency revenues, we still believe that the country's fast-paced currency depreciation could weaken the corporate sector's capacity to service its debt," the report continued.
The India strategy has given 35 per cent returns in the dollar since the last four years despite of a high currency depreciation largely driven by encouraging Indian growth.
Since the start of devaluation of Chinese Yuan on August 11, 2015, currency depreciation around the globe, particularly in the developing countries has accelerated.
Since the start of devaluation of Chinese Yuan on 11th August 2015, currency depreciation around the globe, particularly in the developing countries has accelerated.
An analyst with the American bank said that even though India seems to be less vulnerable to China's currency depreciation through direct channels, the rupee could see an erosion in value.
A government measure, which took effect in late 2014, mandated the conversion, at market rates, of banks' FX-denominated mortgages into Hungarian forints - thereby removing significant asset quality risks stemming from possible local currency depreciation.
Currency depreciation led, respectively, to the increase in inflation to the level of 10.
Brazil's policy rate is 13 per cent and the real interest rate is five per cent but foreign investors are not attracted to the real's high-carry returns since currency depreciation can easily saddle them with a loss on Brazilian deposits.