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Topic Videos

Difference between Depreciation and Devaluation

Level:: A-Level

Board:: AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 21 Mar 2021

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A depreciation of the value of the exchange rate happens in a floating currency system whereas a devaluation happens inside a fixed or semi-fixed exchange rate system.The central bank changes the official peg / currency anchor price for official trading. This short revision video clip looks at some recent examples.

Difference between Depreciation and Devaluation

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