Currency Depreciation

We discuss the specie depreciation vs. devaluation. Also, discuss the impact of currency depreciation from Indian economy perspective. coin disparagement & angstrom; Impact Rajesh Kanjani (34473) rajesh.kanjani@hotmail.com SIBM Exe. MBA (2011-2014) Currency Devaluation vs. Depreciation The devaluation and deprecation of currency go more or less hand in hand. Currency depreciation is an stinting solution, whereas devaluing a currency is an act that results in currency depreciation. many an(prenominal) a times they are technically used interchangeably. Depreciation of Currency * When a currency depreciates, this means that the currency has decreased in esteem when compared to another nations currency. Devaluation of Currency * Devaluation of currency is an fighting(a) economic strategy. It is sometimes used when countries are badly in debt. This deceases when a country lowers the official lever of its currency in relation to foreign currencies. This is intended to raise the price of trade goods and increase the value of the countrys exported goods. This can be a risky economic move because it can spark hyperinflation. two of these concepts involve international economics and foreign exchange trading. Devaluation is a result of natural changes within the world economy.

Devaluation can occur because of several different circumstances. These circumstances also might not necessarily be the fault of the country whose currency was devalued. other(a) countries currencies can pee-pee stronger which results in a devaluing domestic currency. Currency depreciation is an active economic move with the desired result being devaluation of currency on the foreign exchange market. Relating Devaluation & amp; Depreciation to Currency Regime * In a freely and managed floating currency regime, a loss in currency value is conventionally called depreciation, whereas an increase of currencys international value will be called appreciation. If the dollar rises from 10,000 yen... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .