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RBA Glossary definition for appreciation

appreciation – An increase in the value of an asset. In foreign-exchange terms, it is a relative increase in the value of one currency compared to another.

Search Results

The Effect of the Mining Boom on the Australian Economy

22 Aug 2014 RDP 2014-08
Peter Downes, Kevin Hanslow and Peter Tulip
The boom has contributed to a large appreciation of the Australian dollar that has weighed on other industries exposed to trade, such as manufacturing and agriculture.
https://www.rba.gov.au/publications/rdp/2014/2014-08.html

Previous Research

31 Dec 2014 RDP 2014-08
Peter Downes, Kevin Hanslow and Peter Tulip
This work emphasises that a boom in commodity exports often affects the broader economy by inducing an appreciation of the real exchange rate. ... However, the appreciation also weakens the competitiveness of other exporters and of import-competing
https://www.rba.gov.au/publications/rdp/2014/2014-08/pre-res.html

Aggregate Responses

31 Dec 2014 RDP 2014-08
Peter Downes, Kevin Hanslow and Peter Tulip
This means it increases with the terms of trade, and expected rates of appreciation match interest differentials. ... However, these effects are initially more than offset by the appreciation of the exchange rate (FigureĀ 5), which lowers import prices.
https://www.rba.gov.au/publications/rdp/2014/2014-08/agg-res.html

Sectoral Responses

31 Dec 2014 RDP 2014-08
Peter Downes, Kevin Hanslow and Peter Tulip
The effect of strong demand is offset, to varying degrees, by the exchange rate appreciation. ... However, this effect is more than offset by the 40 per cent appreciation of the exchange rate, which makes manufacturing less competitive.
https://www.rba.gov.au/publications/rdp/2014/2014-08/sec-res.html

Conclusion

31 Dec 2014 RDP 2014-08
Peter Downes, Kevin Hanslow and Peter Tulip
It has also led to large changes in relative prices, most noticeably an appreciation of the exchange rate.
https://www.rba.gov.au/publications/rdp/2014/2014-08/conclusion.html

Introduction

31 Dec 2014 RDP 2014-08
Peter Downes, Kevin Hanslow and Peter Tulip
There have also been costs. The boom has led to a large appreciation of the Australian dollar that has weighed on other industries exposed to trade, such as manufacturing and agriculture.
https://www.rba.gov.au/publications/rdp/2014/2014-08/introduction.html

Appendix B: Comparisons to the Monash Model

31 Dec 2014 RDP 2014-08
Peter Downes, Kevin Hanslow and Peter Tulip
Both models have appreciations in the real exchange rate that are similar to, but slightly smaller than, the increase in the terms of trade.
https://www.rba.gov.au/publications/rdp/2014/2014-08/appendix-b.html