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Currency Depreciation vs. Devaluation Explained
1st March 2025
In this Tutor2u Economics video, Geoff Riley unpacks the crucial distinction between currency depreciation and currency devaluation—two key concepts that shape global trade, investment, and economic policy.
What causes a currency to depreciate?
Why do governments devalue their currencies?
How do these changes impact trade, inflation, and economic growth?
Using real-world examples like the UK Sterling, Turkish Lira, Chinese Yuan, and Venezuelan Bolívar, this video explores the economic motivations behind currency fluctuations and how they affect global markets.
💡 Whether you’re an A-Level, IB, or university economics student, or an economics teacher, this is a must-watch for boosting your understanding of exchange rate dynamics!
- Economics
- Blog
- Topic updates
- Competitive Devaluation
- Internal devaluation
- Currency War
- Currency Depreciation
- Currency crisis
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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