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Devaluation occurs when a country's central bank or monetary authority intentionally reduces the value of its currency relative to other currencies. This can be done through a variety of mechanisms, such as lowering interest rates, selling foreign reserves, or implementing direct intervention in the foreign exchange market. Devaluation can help boost exports by making goods cheaper for foreign buyers, but it can also lead to higher inflation and reduced purchasing power for domestic consumers.

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Related questions

What does social devaluation mean?

what does social devaluation mean


What effect did the devaluation of coins have on the economy?

The economy increased due to the devaluation of the coins.


How would you define revaluation?

Revaluation is the opposite of devaluation. This occurs when, under a fixed-exchange-rate regime, there is pressure on a country's currency to rise in value in foreign-exchange markets.


Devaluation of currency leads to?

the stoppage of consumer


Can you say devaluation of the society?

No. Devaluation is applied to an object which has a measurable value (such as currency). You could use the words decay, collapse or disintegration to refer to society.


What has the author Peter Holmes written?

Peter Holmes has written: 'Industrial pricing behaviour and devaluation' -- subject(s): Commerce, Devaluation of currency, Pricing


Describe how competency and image enhancement assist with addressing social devaluation?

Competence and image enhancement helps in the enhancement of quality with addressing the social devaluation.


Are the negative effect of devaluation in long term?

yes


What holds value in a currency devaluation?

Premium Bonds


How do you use the devaluation stone on Pokemon vortex?

to use the devaluation stone on pokemon vortex you need to have no i mean no stones at all, then click EVOLVE and you will have a fossilised pokemon :):):):):):) have fun!! ^


How does devaluation and the trade balance related?

Due to devaluation the balance of trade of a country improves in the long run. Balance of trade refers to import and export of merchandise goods of a country. Devaluation means decresing the external face value of domestic currency at international market compare with other countries currency.


What is the impact of devaluation in elderly people?

Devaluation in elderly people can lead to feelings of worthlessness, low self-esteem, and reduced quality of life. It can also contribute to mental health issues such as depression and anxiety. It is important to provide support and validation to elderly individuals to help combat feelings of devaluation.