What are appreciation and depreciation What do appreciation and depreciation mean? How can the value

1. Appreciation refers to the improvement of a certain commodity (including currency) relative to other commodities.

For example, a few days ago, pork ** was 8 yuan a catty, and now it is 16 yuan a catty. Compared with pork, the price of other commodities has basically not increased, which can be said to have appreciated the value of pork by 100%.

2. Consideration of two aspects of depreciation:

Under the floating exchange rate mechanism, when a unit of currency is exchanged for a foreign currency, ** falls, the currency is said to have depreciated.

Under the system of paper money issuance, if the amount of paper money issued exceeds the demand, the value of the paper money will fall due to the inflation of the currency, which is also called currency depreciation.

For example, the depreciation of the dollar occurred when the exchange rate of the dollar fell from 6 francs to 1 dollar to 4 francs.

For appreciation and depreciation relative to a certain currency, the main currency is now the US dollar, so the US dollar is for the US dollar. In China, the appreciation of the renminbi, the increase in prices, the increase in labor costs, and the tightening of credit for small and medium-sized enterprises (SMEs) will for the first time face multiple pressures from the growth of raw materials, the increase in production costs, and the blockage of export channels. To put it bluntly, money is more valuable, which can be understood as an increase in the gold content of the unit currency.

And depreciation is just the opposite, for a country is not to see the currency appreciate, if the currency appreciates then we also exchange back less money, currency issuance is based on the ** reserve to issue not casually, so the country does not want most of the money to flow out.

Understand the appreciation and depreciation of currencies in seconds.

Appreciation and depreciation are both international financial concepts, both of which are the currencies of one country against the currencies of the other. <>

IfThe renminbi appreciated.

In layman's terms, you can buy something for $20 for $10, and currency depreciation means that the currency is worthless, if you have a hundred dollars, but you can only buy something for ten dollars, it means that the depreciation has occurred. If China's renminbi appreciates, it will be beneficial and harmful. The advantage is that you will spend less money on traveling abroad, and the disadvantage is that it is not conducive to domestic exports, because China's things become more expensive, and importers will import a lot of foreign things, which may suppress the national industry and is not conducive to the long-term sustainable development of the domestic industry.

The appreciation of the renminbi is determined by the domestic market, depending on the import and export rate of the country, the interest rate of the central bank, and the face value of other countries' currencies. If you want the currency to appreciate, then the easiest and most effective way is to increaseDeposit interest rates, tightening the circulation of money, controlling the printing press, and so on.

The appreciation of the renminbi comes from internal reasons in the domestic economic system and external pressures, and the internal impact is mainly the balance of payments.

The state of foreign exchange reserves, the price level and the inflation rate.

and economic growth and interest rates. The appreciation of the renminbi will put export enterprises under tremendous pressure, which has long become an important factor affecting the profits of export enterprises.

All in all, appreciation is not up to you and me, but is mainly determined by the market, which plays a decisive role in the process of resource allocation. If the RMB appreciates, we, as consumers, will also be greatly affected, for example, domestic things become more expensive, if we have no money**, go abroad to spend, etc., our own living standards will also decline. Therefore, the appreciation of the renminbi does not seem to be a good thing.

No matter what, you still have to do what you have to do, and if there is a problem, the state will take care of it.

Appreciation means that the value is constantly rising, depreciation is the value is falling, under normal circumstances, if it is very rare, then there will be appreciation, or there are some changes in the market, then it will also be upgraded.

Appreciation is an increase in value, depreciation is a decrease in value, and if you want to appreciate, you have to increase from your own value.

The meaning of these two words refers to the growth and decline of **, representing the meaning of **making money and losing money, you can observe how huge the enterprise behind the ** ticket is, as well as its operation mode, and you can know whether it is a ** that can appreciate.

Relative to other currencies, the purchasing power of the renminbi has increased. The reason for the renminbi's appreciation is due to internal dynamics in China's economic system and external pressures. Internal influencing factors include the balance of payments, foreign exchange reserves, price and inflation, economic growth and interest rates.

Extended information is closed:

The exchange rate, which refers to the exchange rate between two currencies, can also be regarded as the value of one country's currency against another. Specifically, it refers to the ratio or ratio of one country's currency to another country's currency, or the ** of another country's currency expressed in one country's currency.

Exchange rate changes have a direct regulating effect on a country's imports and exports**. Under certain conditions, by devaluing the national currency externally, that is, allowing the exchange rate to rise, it will play a role in promoting exports and restricting imports; On the contrary, the appreciation of the national currency, that is, the decline of the exchange rate, will play the role of restricting exports and increasing imports.

Import and export. Generally speaking, the reduction of the local currency exchange rate, that is, the depreciation of the foreign value of the local currency, can play a role in promoting exports and inhibiting imports; If the exchange rate of the local currency increases, that is, the ratio of the local currency to the outside world rises, it is conducive to imports and not conducive to exports.

Prices. From the point of view of imported consumer goods and raw materials, the decline in the exchange rate will cause the **** of imported goods in the country. The extent to which it affects the general price index depends on the share of imported goods and raw materials in GDP.

On the contrary, all other things being equal, the price of imports is likely to decrease, and the extent to which it affects the general price index depends on the share of imported goods and raw materials in the gross national product.

Capital flows. Short-term capital flows are often more affected by exchange rates. When there is a trend of depreciation of the local currency, domestic investors and foreign investors are reluctant to hold various financial assets denominated in the local currency, and will convert them into foreign exchange, resulting in capital outflow.

At the same time, due to the exchange of foreign exchange, the shortage of foreign exchange will be exacerbated, which will prompt the exchange rate of the Sen currency to further **. On the contrary, when there is a trend of foreign appreciation of the local currency, domestic investors and foreign investors will strive to hold various financial assets denominated in the local currency, which will trigger capital inflow. At the same time, the oversupply of foreign exchange will lead to a further rise in the exchange rate of the local currency due to the conversion of foreign exchange into the local currency.

Appreciation and depreciation mainly refer to the increase or decrease in purchasing power.

Depreciation refers to the decrease in the exchange rate of a currency in the international market, i.e., an increase in the amount of currency required to exchange for other currencies. The depreciation is usually artificially regulated by the ** or ** banks, mainly to boost exports and make domestic products look cheaper abroad, so as to attract foreign consumers to buy slowly. Currency depreciation can also be driven by market forces, usually due to deteriorating economic conditions in the country or an overabundance of currency**.

In this case, foreign investors may fear a decrease in the value of the currency and, as a result, reduce the demand for the country's currency. This will lead to a depreciation of the currency. In summary, depreciation refers to the decline in the exchange rate of a currency in the international market, which is usually artificially regulated by a bank or banks, but can also be driven by market forces.

Refers to the decrease in the value of a specific currency, which is generally based on the amount converted to other currency units, which means that the value decreases or decreases.

in macroeconomics.

The value of a currency.

It depends on the relationship between the aggregate demand for the currency and the aggregate supply. The exchange rate policies of different countries are also different, some countries use a floating exchange rate system, while others use a fixed exchange rate system, and their currencies are exchanged at a certain value against the US dollar or other major currencies.

In countries that use a fixed exchange rate system, the fixed exchange rate is based on legally mandated capital controls or by ** to adjust the foreign exchange reserve.

to maintain. However, in the event of sustained capital outflows or ** deficits.

, the exchange rate may be lowered or changed to a floating exchange rate, resulting in a depreciation of the currency.

In an open exchange rate market, if a currency is expected to depreciate, speculators will sell the currency and exchange it for other foreign currencies, which will reduce the foreign exchange reserve of the currency and increase the pressure on currency depreciation.

Economists Paul Krugman and Obsfar proposed a model that states that a currency crisis occurs when a country's nominal exchange rate equals the real exchange rate (the exchange rate adjusted after taking into account the spread between different countries).

However, in practice, currency crises generally occur when the real exchange rate is lower than the nominal exchange rate, the reason is that speculators do not have complete information, sometimes when the exchange rate of some countries depreciates, their foreign exchange reserves are quite low, such countries will become the target of speculators, in this case, the exchange rate will depreciate rapidly and sharply, the Asian financial turmoil.

That's the case.

Generally speaking, persistent inflation is not considered a currency depreciation, but when inflation reaches a certain level, the exchange rate of the currency relative to ** (or other foreign currencies) will naturally decline, especially if a country has a persistent budget deficit.

This is especially true when it is treated as the issuance of money without regard to borrowing (often the cause of hyperinflation), in which case inflation can be seen as a depreciation of the currency.

Depreciation means that the same currency can exchange less goods.

The depreciation is due to the price of goods on the one hand, and the increase in the amount of money issued on the other.

Depreciation is this decrease in the exchange rate of the currency.

It means that you get less to buy