Definition
- Depreciation
- Depreciation is a fall in the value of a currency in terms of other currencies, which is also called weakening.
- Not to be confused with: Appreciation
- Appreciation is a rise in the value of a currency in terms of other currencies, which is also called strengthening.
Test yourself
What is the difference between depreciation and appreciation?
Depreciation is a fall in a currency's value; appreciation is a rise.