Currency appreciation and depreciation
Change of currency values relative to other currencies / From Wikipedia, the free encyclopedia
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For the accounting term, see 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 in which no official currency value is maintained. Currency appreciation in the same context is an increase in the value of the currency. Short-term changes in the value of a currency are reflected in changes in the exchange rate.[1][2][3][4]
There is no optimal value for a currency.[5] High and low values have tradeoffs, along with distributional consequences for different groups.[6][5]