![cover image](https://wikiwandv2-19431.kxcdn.com/_next/image?url=https://upload.wikimedia.org/wikipedia/commons/thumb/6/69/Huskisson_-_Question_concerning_the_depreciation_of_our_currency%252C_1810_-_5221173.tif/lossy-page1-640px-Huskisson_-_Question_concerning_the_depreciation_of_our_currency%252C_1810_-_5221173.tif.jpg&w=640&q=50)
Currency appreciation and depreciation
Change of currency values relative to other currencies / From Wikipedia, the free encyclopedia
For the accounting term, see Depreciation.
Currency depreciation is the loss of value of a country's currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system in which no official currency value is maintained. Currency appreciation in the same context is an increase in the value of the currency. Short-term changes in the value of a currency are reflected in changes in the exchange rate.[1][2][3][4]
![](http://upload.wikimedia.org/wikipedia/commons/thumb/6/69/Huskisson_-_Question_concerning_the_depreciation_of_our_currency%2C_1810_-_5221173.tif/lossy-page1-640px-Huskisson_-_Question_concerning_the_depreciation_of_our_currency%2C_1810_-_5221173.tif.jpg)
There is no optimal value for a currency.[5] High and low values have tradeoffs, along with distributional consequences for different groups.[6][5]