Contrary to appearances

Afrinrubi

Political decisions may destabilize the market, discouraging investments in the country's currency. Level of interest rates The level of interest rates is another aspect that strongly influences other economic phenomena. Decisions about their level are made by state However, due to the decline in the value of the currency, the revenues from it are lower; As production increases, employment in given economic sectors increases. Both the causes and effects of depreciation are strongly dependent on each other.

Usually, the appearance of one of the above-mentioned factors increases the risk of the appearance of others, creating a "vicious circle". In the phone number list longer term, they may significantly destabilize the situation on many markets. Currency devaluation A concept similar to depreciation is currency devaluation. However, the difference between them is that the latter refers to a fixed exchange rate, controlled by the monetary authorities. Examples of currency depreciation in the world.



Depreciation of national currencies, , is not only a definition described in textbooks. At the turn of the years, we witnessed several situations that led to it and had serious implications. Türkiye Drastic declines in the value of the lira Turkish currency have been observed for several years. This is due to, among others, by the armed conflict in the Middle East, numerous attacks and poor decisions of the local authorities. Namely, in the face of raging hyperinflation in June 2022 it reached as much as 175% and the economic crisis, it was decided to lower interest rates, which contradicts the logic of monetary policy.