Revaluation and appreciation of currency are one and the same thing.

Question

Are the statements true or false? Give reasons.

Revaluation and appreciation of currency are one and the same thing.

Answer 1

False. Revaluation refers to increase in the value of domestic currency by the government under fixed exchange rate. On the other hand, currency appreciation refers to increase in the value of domestic currency in terms of foreign currency under flexible exchange rate system.