appreciation and revaluation of the currency are one and the same thing do you agree

Dear student
No, these two terms are not exactly the same, inspite their implication on the currency is same as both leads to increase the value of domestic currency in comparison to foreign currencies.
appreciation of currency: it occurs under floating exchange rate. where value of currency is changed due to the demand and supply of currencies. there, is no official interference.
revaluation: it occurs under fixed exchange rate system. the central bank or the government decides the value of domestic currency with respect to other foreign currencies.
Regards

  • 1
What are you looking for?