Appreciation

Definition

Appreciation refers to an increase in the value of a country's currency relative to other currencies. This means that one unit of the currency can buy more units of another currency.

Related terms

Trade Surplus: When a country exports more than it imports, which can lead to appreciation.

Balance of Payments: A record of all economic transactions between residents of one country and residents of foreign countries.

Capital Inflows: The movement of money into a country from foreign investors, which can cause appreciation.