What's it: The real exchange rate is the price of one currency against another currency adjusted for differences in the price levels of domestic and foreign prices. The aggregate price level measure is inflation, which shows you the
What's it: Purchasing power parity (PPP) is an economic concept for equalizing the price of a set of identical items across different locations. Long story short, these goods should be priced at the same level in various
What's it: Currency appreciation is when the exchange rate of one currency against another currency increases. One unit of currency can buy more of another currency. Appreciation makes foreign products cheaper for domestic buyers,
What's it: Currency refers to the money accepted and used as legal tender in a country. It includes banknotes and coins you use daily. The central bank or authority acts as the sole supplier and monitors its circulation in the
What's it: A currency crisis is a situation in which the exchange rate of a currency falls, causing a sharp decline in foreign reserves. The fall was possible due to a brief bout of speculation on the foreign exchange market.
Exchange rate represents the price of one currency when we exchange to another currency. For example, the current exchange rate of Rp/USD is 14,000. USD is the base currency or base currency (foreign currency), and Rp is the price currency
Currency depreciation is a decrease in the purchasing power of domestic currency against other currencies. Currency depreciation has considerable impacts on the economy, particularly international trade and international financial