currency Y depreciate against USD by _________% Let’s say currency Y used to be at 1=$1 USD on fixed peg, now it changed to 1.25 = $1USD, how much has currency X depreciate

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 24CTQ: Can you think of any major disadvantages to dollarization? How would a central bank work in a...
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  1. currency Y depreciate against USD by _________%

Let’s say currency Y used to be at 1=$1 USD on fixed peg, now it changed to 1.25 = $1USD, how much has currency X depreciate?

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Depreciation is the decrease in the value of the currency in terms of other currency.

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