Currency appreciation refers to an increase in the value of a currency relative to another currency, while currency depreciation refers to a decrease in the value of a currency relative to another currency. These concepts are pivotal in international trade, impacting everything from import/export prices to inflation rates.
The Smithsonian Agreement was a pivotal international accord signed in December 1971, which ended the fixed exchange rates established at the Bretton Woods Conference of 1944 and substituted a floating currency exchange rate.
