Oct 8, 2021
1 min read
Exchange Rates: Depreciation
A currency depreciation is when its value decreases comparing with another currency.
The value of the currency is measured by its exchange rate against another currency. Its value will fall, which will be reflected in falling price of that currency, or falling exchange rate, when supply of the currency exceeds demand.
With lower value, now, one unit of the currency will buy less units of another currency. For example, if USD$1 falls from RMB7 to RMB6.5, the value of the USD$ has depreciated.
https://www.superbusinessmanager.com/exchange-rates-depreciation/
