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.
Depreciation is a measure of the decrease in value of tangible fixed assets during a given accounting period, reflecting wear and tear, obsolescence, or reduction in useful economic life. It can be relevant for both accounting and currency valuation contexts.
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