The media often use the terms devaluation and depreciation (or revaluation and appreciation) interchangeably which is correct.

Question

Quizplus · Accepted Answer

Devaluation and depreciation are not the same thing. Devaluation refers to a deliberate decrease in the value of a currency relative to other currencies, usually done by a government or central bank. Depreciation, on the other hand, refers to a decrease in the value of a currency in the foreign exchange market due to market forces. Revaluation and appreciation are also distinct from each other and from devaluation and depreciation, as they refer to an increase in the value of a currency. Therefore, it is important to use these terms accurately and not interchangeably in media reporting.

The Media Often Use the Terms Devaluation and Depreciation (Or