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

see DEPRECIATION 1.
References in periodicals archive ?
First, total public debt increased by Rs 7.75 trillion during FY 2018-19, out of which (a) Rs 3.44 trillion (44%) was borrowed for meeting the budget deficit; (b) Rs 3.03 trillion (39%) was due to currency depreciation; (c) Rs 1.02 trillion (13%) is offset by higher cash balances necessary for effective cash management as the government is committed to zero borrowing from State Bank of Pakistan (SBP) in future; and (d) Rs 0.26 trillion (3%) is difference between face value (which is used for recording of debt) and the realized value (which is recorded as budgetary receipt) of Pakistan Investment Bonds (PIB) issued during the year.
The Rs7.6trillion increase in public debt is far higher than the estimated budget deficit of nearly 9% of gross domestic product even after taking into account the impact of steep currency depreciation on the stock of external public debt.
The Rs7.6-trillion increase in public debt is far higher than the estimated budget deficit of nearly 9% of gross domestic product (GDP) even after taking into account the impact of steep currency depreciation on the stock of external public debt.
The PBoC cited "trade protectionism" as behind a decline in the yuan to an 11-year low below the politically sensitive 7.0 to the dollar level, with the currency depreciation threatening to worsen relations between the U.S.
The decline came on account of currency depreciation of 25% YoY which eroded margins as company was unable to pass on the impact of adverse currency movement and higher duties on imported raw material.
'The import compression policy is not working successfully as the reduction in trade deficit induced by currency depreciation is less than $3 billion,' remarked Dr Hafiz Pasha, a renowned economist.
Another currency depreciation will not have negative consequences for macro-financial stability.
LAHORE -- As the US dollar kept fluctuating and hit record high of Rs158 against rupee, registering a 6 percent appreciation in the last 12 days, the Friends of Economic and Business Reforms (FEBR) President Kashif Anwar has urged the government to take action against shortage of dollar in local market to control heavy losses to economy inflicted by the local currency depreciation.
There was a net increase of Rs1.44 trillion in the external debt, largely due to currency depreciation.
Due mainly to excessive taxation and currency depreciation, any salary increase given by this Government disappears almost immediately," he said.
Average inflation accelerated sharply from 3.8% in the first 8 months of FY2018 to 6.5% in the same period of FY2019, led by a surge in nonfood inflation to 9.1% that reflected currency depreciation and a significant increase in gas tariffs for consumers and industry in the first half.
The British Retail Consortium (BRC) said the increase in non-food prices reflected the slow release of significant cost pressures which had built up in the supply chain over the last two years, notably from the currency depreciation in 2016 and the rise in oil prices last year.