Banking Term: Currency Appreciation

Find important banking term that is useful in upcoming banking exam.

Mar 13, 2015 12:10 IST
  • It is the increase in the exchange rate of one currency in terms of other currencies.
  • The term is usually applied to a currency with a floating rate of exchange; upward changes in fixed rate of exchange are called Revaluation. 
  • If currency appreciates, it becomes more expensive to buy that country's exports.
  • This can cause a contraction in the economy, which can further impact the value of the currency.

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