|
Basis |
Devaluation |
Depreciation |
|
Meaning |
Devaluation refers to reduction in price of
domestic currency in terms of all foreign currencies under fixed exchange
rate |
Depreciation refers to fall in market price of
domestic currency in terms of a foreign currency under flexible exchange rate
regime. |
|
Occurrence |
It takes place due to Government |
It takes place due to market forces of demand and
supply |
|
Exchange rate system |
It takes place under fixed exchange rate system |
It takes place under flexible exchange rate system |