Why is currency depreciation inflationary and expansionary?

Currency depreciation is inflationary because it increases the cost of imported goods, leading to higher prices for consumers. As the value of the currency falls, it takes more money to purchase foreign products, which can drive overall price levels up. Additionally, depreciation can be expansionary as it makes domestic goods cheaper for foreign buyers, boosting exports and encouraging economic growth. This increased demand can stimulate production and investment in the domestic economy.