Currency depreciation refers to:

Currency depreciation refers to a decrease in the value of one currency relative to another. This means that when one currency depreciates, it takes more of that currency to purchase the same amount of foreign currency or goods priced in that foreign currency. For example, if the value of the euro decreases compared to the dollar, European goods become cheaper for American consumers, but American goods become more expensive for Europeans.

Understanding currency depreciation is crucial in international business, as it can affect trade balances, investment decisions, and overall economic health. A depreciated currency can enhance a country's export competitiveness because its goods and services become cheaper for foreign buyers. Conversely, it can make imports more expensive, which may lead to higher prices for consumers and businesses that rely on foreign products.

The other options do not accurately describe depreciation. An increase in the value of a currency represents appreciation, a stable exchange rate does not indicate any movement in value, and a temporary fluctuation refers to short-term changes that do not necessarily imply a consistent decrease in value over time.