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Differences between depreciation and devaluation . …

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Differences between depreciation and devaluation . And its impact on imports and exports of domestic goods .
  • 2 answers

Vinay Bhadana 7 years, 11 months ago

Devaluation takes place in the fixed exchange rate system where else depreciation takes place in the flexible exchange rate system it will increase the exports of domestic currency as they will become cheaper for the foreigners because now they have to spend less for the same quantity of product

Rahul Singh 7 years, 11 months ago

Devaluation :when external value of domestic currency is decreases in the foreign exchange market due to free forces of demand and supply is called devaluation Depreciation: when government reduces the external value of domestic currency in foreign exchange market is called depreciation In Both Cases Export increases while import decreases
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