Okuzeka
Economics vocabulary · Trade and Exchange Rates

Appreciation

Meaning in economics, with examples

/əˌpriːʃiˈeɪʃn/nounCommon term

In economics, appreciation means: A rise in the value of a currency compared with other currencies, so that it buys more foreign money than before; the opposite of depreciation.

In Turkish: değer kazanma, değerlenme

How it is used

Used for floating currencies whose value is set by the market; when a government raises a fixed rate, it is a revaluation. Appreciation makes imports cheaper and exports more expensive. The verb is appreciate: the euro appreciated against the dollar.

Example sentences

  1. The appreciation of the currency has made imported cars cheaper.

  2. Exporters complain that the sharp appreciation is hurting their sales.

Common collocations

  • currency appreciation
  • real appreciation
  • appreciation against the dollar
  • sharp appreciation
  • depreciationA fall in the value of a currency against other currencies under a floating exchange rate, driven by market forces rather than an official decision.
  • exchange rateThe price of one currency expressed in another, for example how many Turkish lira you need to buy one US dollar or one euro.
  • currencyThe system of money used in a country, such as the lira, the euro or the dollar; foreign currency means money from other countries.
  • floating exchange rateAn exchange rate system in which the value of a currency is set by supply and demand in the foreign exchange market rather than fixed by the government.
  • exportA good or service sold to buyers in another country; as a verb, to sell goods or services abroad.

More terms: Trade and Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.