<p>It depends on whether we have tradable or non-tradable items in mind. When a country's currency depreciates, tradable goods in that country start to become more expensive in the local currency. The adjustment process might be a bit sluggish, but we expect the real prices to return to the international price level. The reason is that tradable can always be imported/exported, so their real price should be determined outside of the country (assuming the country is reasonably small relative to the global market). Of course, if there are some trade costs, the adjustment might not be 100% perfect.</p>
<p>However, non-tradable items, like most services, might become cheaper in real terms when the currency depreciates. For instance, when the currency of a country depreciates, things like accommodation and transportation become cheaper for foreign visitors.</p>

CC BY-SA 4.0
2021-12-29T14:31:51.557Z
2021-12-29T14:31:51.557Z
Econlover
<p>Is it a good idea to visit those countries whose currency is falling? (As in exchange rate). In another words does the items there become cheaper if I could now get more money in there currency for the same amount in my currency?</p>

CC BY-SA 4.0
2021-12-29T07:52:57.783Z
"*does the items there become cheaper if I could now get more money in there currency for the same amount in my currency*" As long as the prices were set in their home currency that weakens against your own currency, and they do not change prices, sure? (I am not sure this is what you are asking.) But you should probably check the prices before you go.
Giskard
<exchange-rates>
Does countries for which exchange rate is falling become cheaper
Daniel
# Does countries for which exchange rate is falling become cheaper

(Asked by: username_0 on 2021-12-29)

Is it a good idea to visit those countries whose currency is falling? (As in exchange rate). In another words does the items there become cheaper if I could now get more money in there currency for the same amount in my currency?

**Tags:** exchange-rates
> **Comments:**
> **username_1**: "*does the items there become cheaper if I could now get more money in there currency for the same amount in my currency*" As long as the prices were set in their home currency that weakens against your own currency, and they do not change prices, sure? (I am not sure this is what you are asking.) But you should probably check the prices before you go.  

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## 1 answers

### Answer by username_2 on 2021-12-29. Score: 2

It depends on whether we have tradable or non-tradable items in mind. When a country's currency depreciates, tradable goods in that country start to become more expensive in the local currency. The adjustment process might be a bit sluggish, but we expect the real prices to return to the international price level. The reason is that tradable can always be imported/exported, so their real price should be determined outside of the country (assuming the country is reasonably small relative to the global market). Of course, if there are some trade costs, the adjustment might not be 100% perfect.

However, non-tradable items, like most services, might become cheaper in real terms when the currency depreciates. For instance, when the currency of a country depreciates, things like accommodation and transportation become cheaper for foreign visitors.


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