What is currency depreciation? Back to list

Member SinceMar 07, 2022

Posts 230

Agaricy96

Sep 23, 2022 a 12:39
Currency depreciation is the decline in the value of one currency in relation to another. It specifically refers to currencies with a floating exchange rate, which is a system in which the value of a currency is determined by the forex market based on supply and demand.

Currency appreciation is the inverse of currency depreciation, in which a currency gains strength. Forex traders can profit from both appreciation and depreciation by taking a long or short position based on their market forecast.

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