Currency Appreciation

Currency appreciation refers to the rise in value of a currency relative to other currencies or gold. Appreciation occurs when a unit of one currency can buy more units of another currency because of a change in exchange rates. Conversely, currency depreciation refers to decrease in the value of a currency with respect to another currency. This means that the depreciated currency is worth fewer units of the other currency. While depreciation means a reduction in value, it can be advantageous as it makes transactions in the depreciated currency less expensive.

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