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in Open Economy Macroeconomics by (26.2k points)
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Differentiate between Devaluation and Depreciation.

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Devalution:

Lowering of the value of domestic currency through official procedure by the central bank under fixed exchange rate system is known as currency devaluation.

Depreciation:

The loss in the value of domestic currency when exchanged with foreign currency under flexible exchange rate system is known as currency depreciation.

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