What effect does a decrease in the value of currency have on the price of imports and exports?

Question

And what are the effects if the value of currency increases?

Answer 1

The price of imports will increase, because it will take more dollars to equal the value of the good or service being purchased.

Exports typically do not change prices based on the value of the dollar.

Answer 2

If your currency is worth less (depreciated) in international market - then goods/services produced domestically (in your country) becomes relatively cheaper - thus foreigners will purchase more of your goods apparently increasing your export.

At the same time your currency can purchase less of foreign goods/ services (due to relative depreciation and appreciation of foreign currency) - so you wil be able to purchase less of foreign-made goods/services with your money. It will lead to decrease in your imports.

As conclusion: Import will fall and export will increase - consequently rising NET export (thus reducing debt).