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Aug 13, 2023 · Devaluation occurs when a country creates a downward adjustment of its currency value to balance trade. Devaluing a currency reduces the cost of a...
In macroeconomics and modern monetary policy, a devaluation is an official lowering of the value of a country's currency within a fixed exchange-rate system, in which a monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket.
The meaning of DEVALUATION is an official reduction in the exchange value of a currency by a lowering of its gold equivalency or its value relative to another currency. How to use devaluation in a sentence.
the action of causing someone or something to be considered less valuable or important: Does staying at home as a mother just encourage the devaluation of women professionally? The existence of slavery represents a devaluation of human life. More examples. SMART Vocabulary: related words and phrases. See. devalue.
A Devaluation occurs when the official value of a currency declines in relation to other currencies. We use the term when the decline is forced. In other words, the authorities planned it. A devaluation is also the underestimation or reduction of the importance or worth of something.
Devaluation is a downward adjustment to a country’s value of money relative to a foreign currency or standard. Many countries that operate using a fixed exchange rate tend to use devaluation as a monetary policy tool to control supply and demand. Summary.
devaluation, reduction in the exchange value of a country’s monetary unit in terms of gold, silver, or foreign monetary units. Devaluation is employed to eliminate persistent balance-of-payments deficits. For example, a devaluation of currency will decrease prices of the home country’s exports that.
