In a situation whereby the New Zealand dollar depreciates from its current state, the depreciation effect will be the demand for the NZ currency to decrease. The reason for this conclusion is that lately, the NZ dollar has been getting healthier according to the forecasts done. It is estimated that the current levels of 67 Us cents are the recent growth compared to the US dollar. Therefore, most people who have been using currency exchange rates will be inconvenienced since they will receive less money as estimated. On the other hand, the country’s economy will have depleted since the values of the dollar will have been altered instead of increasing. However, the depreciation rate of the rate will depend on the current state of the economy. If many people were exchanging the currency using the NZ dollar, many would now shift to other currencies with a higher value, resulting in a decrease in the NZ dollar demand.