Depreciation (currency)
5258706
220751090
2008-06-21T11:54:04Z
Eubot
231599
Hatnote formatting, see [[User:Eubot/Hatnote formatting]]
{{for|the accounting term|Depreciation}}
'''Currency depreciation''' is the loss of value of a country's currency with respect to one or more foreign reference currencies, typically in a [[floating exchange rate]] system. It is most often used for the unofficial increase of the exchange rate due to market forces, though sometimes it appears interchangeably with [[devaluation]]. Its opposite is called '''appreciation'''.
The '''depreciation''' of a country's currency refers to a decrease in the value of that country's currency. For instance, if the Canadian dollar depreciates relative to the euro, the exchange rate (the Canadian dollar price of euros) rises - it takes more Canadian dollars to purchase 1 euro.
The '''appreciation''' of a country's currency refers to an increase in the value of that country's currency. Continuing with the CND/euro example, if the Canadian dollar appreciates relative to the euro, the exchange rate falls - it takes fewer Canadian dollars to purchase 1 euro.
==See also==
*[[Inflation]]
==References==
*[http://www.google.com/search?q=define%3A%22currency+depreciation%22 Google Define: ''Currency depreciation'']
{{money-stub}}
[[Category:Currency]]
[[cs:Depreciace]]