What Is a Diminished Value?
Depreciation (of a currency) refers to the decline in the value of the unit of currency. At present, the currency value of the international gold standard is measured. When a country's currency is exchanged for gold and the price of gold rises, it is said that the currency has depreciated.
- [bin zhí] discuss
- Chinese name
- Currency devaluation
- Foreign name
- devalue
- Depreciation (of a currency) refers to the decline in the value of the unit of currency. At present, the currency value of the international gold standard is measured. When a country's currency is exchanged for gold and the price of gold rises, it is said that the currency has depreciated.
- Paraphrase
- Three explanations for depreciation:
- 1. The purchasing power of currencies has declined. That is, the ability of the same currency to purchase goods in the same environment decreases at different times.
- 2. Decreasing the gold content of the domestic unit currency or reducing the exchange rate of the domestic currency to the foreign currency is called depreciation. The ratio of the two currencies shrinks in the same environment at different times.
- 3. Generally refers to the decrease in value: the devaluation of commodities.