As the dollar price of a foreign currency (for example, dollars per yen) decreases, foreign goods will be expensive, foreign goods will be purchased, and foreign currency will be demanded.

Less; more; more.

Explanation:

Depreciation can be defined as a process in which the monetary or financial value with respect to an asset decrease or falls over time as a result of wear and tear.

This ultimately implies that, depreciation is a process which typically involves the general fall in the value of an asset such as currency, plant equipment or machinery etc over a specific period of time.

Basically, in a floating exchange rate system, a fall or decline in the value of a currency with respect to another currency is generally referred to as currency depreciation.

As the dollar price of a foreign currency (for example, dollars per yen) decreases, foreign goods will be less expensive, more foreign goods will be purchased, and more foreign currency will be demanded.

Hence, if the currency of a foreign country is depreciating, this should stimulate import (more foreign goods will be purchased) because these foreign goods will become relatively less expensive as a result of a fall or decline in the currency and vice versa.

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