Both depreciation and devaluation mean an incent when the value of currency falls in terms of another one. The main difference between them lies in the manner in which this happens. Devaluation happens when a country consciously lowers its exchange rate in a fixed or semi-fixed exchange rate. This may be done, for example, in order to boost its exports. Devaluation is only possible if the country is a member of some kind of fixed exchange rate policy. Depreciation, on the other hand, occurs due to supply and demand factors, that is, the value of a currency falls when the supply of the currency increases when the demand falls. It means the fall in the value of the currency in a floating exchange rate. In other words, it is not the decision of a government, it is the result of the forces of supply and demand.
