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Currency depreciation


The extent to which the value of a currency has fallen in terms of its exchangeable value for other currencies. If the currency of one country is tied to another the extent of its depreciation is reflected in the increase in the cost of the other. If, on the other hand, a country's currency is said to be floating freely in the foreign exchanges then the extent of its depreciation will vary according to with which other currency it is compared.

Reference: The Penguin Business Dictionary, 3rd edt.