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Differentiate between devaluation and depreciation of …

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Differentiate between devaluation and depreciation of rupee??? Pls reply fast it's urgent thank you.. ..

Posted by Mudit Baid 7 years, 10 months ago

CBSE > Class 12 > Economics

1 answers

Shreya Gautam 7 years, 10 months ago

1. Depreciation is done in a flexible exchange rate system and devaluation is done in fixed exchange rate system 2. Depreciation take place due to market forces and devaluation take place due to government 3. Depreciation refers to fall in market price of domestic currency in terms of foreign currency under flexible exchange rate system, And Devaluation refers to reduction in price if domestic currency in terms if all foreign currency under fixed exchange rate system

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