Currency Depreciation & Devaluation Explained Clearly | Foreign Exchange Rate

Ever wondered why the value of money changes? In this video, we break down two of the most important concepts in Class 12 Macroeconomics (Foreign Exchange Rate chapter): Currency Depreciation and Currency Devaluation. While both mean a fall in the value of domestic currency against a foreign currency, the reasons behind them are completely different! We will cover the definitions, the key differences between floating and fixed exchange rate systems, and how these changes impact a country's exports and imports. Perfect for Class 12 board exam preparation and quick revision! Key Concepts Covered: Depreciation: Fall in the value of domestic currency due to market forces (Demand & Supply) in a flexible exchange rate system. Devaluation: Fall in the value of domestic currency deliberately done by the Government/Central Bank in a fixed exchange rate system. Impact: How a weaker domestic currency makes exports cheaper and imports more expensive. #depreciation_of_currenccy #fallingcurrency #flexible_rate_of_exchange #devaluation_of_currency