Overview

currency appreciation


Show Summary Details

Quick Reference

A rise in the price of a country's currency in terms of foreign currency. This makes foreign goods cheaper relative to home-produced goods, which tends to increase imports, and it makes home-produced goods dearer abroad, which tends to decrease exports. Currency appreciation is thus generally bad for a country's balance of trade. Lower import prices, however, tend to reduce inflation.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.