Question

When a country experiences a depreciation of its currency, what does it imply on its economy

Answer 1

Answer:

When a country experiences currency depreciation, it means that its domestic currency is losing value against a foreign currency.

The main consequence of this is that goods expressed in foreign currency become more expensive, which decreases imports.

The goods produced domestically become cheaper for people abroad, for this reason, currency depreciation can promote exports, and some countries have used currency depreciation to strengthen their countries' export sector.

Answer 2

Answer:

For the economy it reduces the country's export cost and trading

Explanation:

Devaluation is the intentional attempt made by a country  for downward adjustment of it's currency value.

The government issuing the currency decides to devalue it.when Devaluing a currency, it reduces the  country's exports costs and can aid the  shrinking tin deficits in trade

Also, the  prices of goods produced locally decline relative to prices of international standard.