abstract:Currency depreciation is the loss of value of a country's currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system. It is most often used for the unofficial increase of the exchange rate due to market forces, though sometimes it appears interchangeably with devaluation.
Then there are all the transactions that take place because investors are trying to ensure the best return on their money relative interest rates, inflation, and the scope for future currencyappreciationanddepreciation are all factors which influence such decisions.
These developing countries often intervene in currency markets to prevent currencyappreciationand its negative effects on their balance of trade resulting from currencydepreciationand manipulation in other countries.