Weakening of a currency

Updated: Aug 20, 2021

A fall in the price of a currency in terms of other currencies. This is caused by a reduction in the demand to hold it, which may be due either to a worsening of the country’s current account, or to shifts into other currencies on ’capital account. See also currency depreciation.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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