It can make purchases invoiced in foreign currency more expensive. It differs from an official devaluation under a fixed exchange rate regime.
Currency depreciation
In a nutshell
Depreciation is a fall in a currency’s value against another currency in the foreign exchange market.
On this page
Explained simply
A practical example
Hypothetical example: if one dollar rises from 10 to 12 local currency units, a USD 100 import now costs 1,200 units instead of 1,000.
Further reading
Source: Banque de France — Exchange rates.
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What this means
USD 100 costs 1,000 local units before fees.
Educational scenarios. Amounts and rates are fictional, not current market conditions.