appreciation
Appreciation is he act and result of appreciating. This verb (to appreciate), in turn, has multiple meanings: it can be about perceive something through the senses; from increase the value of a currency; or from define the price of an item.
For example: "The rain made it difficult for those who were located far from the stage to appreciate the show", "According to economists, the appreciation of the peso may lead to a drop in exports", "The appreciation of the euro against the yuan opens up new business possibilities".
The term is also often used with respect to the subjective assessment of a fact or situation. An appreciation, in this sense, is a opinion, an interpretation or a reflection: "I do not agree with the judge's assessment, for me the accused should have been sentenced to life imprisonment", "I think there was an error of appreciation on the part of the government, which underestimated the scope of the crisis", "I still think the same since the latest events did not change my appreciation".
The notion of appreciation appears frequently in the field of economy and the finance. As we indicated above, the appreciation supposes a rise in the value or price of a currency compared to another or others, as long as there is a floating exchange rate.
When in the market Currency increases the price of a currency, appreciation occurs. On the contrary, if that price falls, the depreciation. Although governments can intervene in the exchange rate in different ways, the appreciation and depreciation usually occur according to the free interplay of supply and demand in the exchange market.
Leave a Reply