Tag Archives: facts

Currency Depreciation

Currency Depreciation Understanding Currency Depreciation Countries with weak economic fundamentals, such as chronic current account deficits and high rates of inflation, generally have depreciating currencies. Currency depreciation, if orderly and gradual, improves a nation’s export competitiveness and may improve its trade deficit over time. But an abrupt and sizable currency depreciation may scare foreign investors…

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How exchange rate is determined

How exchange rate is determined Current international exchange rates are determined by a managed floating exchange rate. The economic actions of its government or central bank affect each currency’s value that means a managed floating exchange rate. The managed floating exchange rate hasn’t always been in use. The gold standard controlled international exchange rates until…

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