How Does Currency Affect Trade?

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The increase and decrease in the value of currency affects the trade.

Explanation:

The appreciation or depreciation of the currency affects the trade. If the currency of a certain country depreciates that means the value of the currency has decreased. In such cases, the import of the country will decrease and the export of the country will increase because the fall in the value of currency makes the import costly. However, if the currency appreciates, then its import will rise because appreciation of currency will make the import cheaper.

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