Currency devaluation


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

Currency devaluation

A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold.

Devaluation

The active decision of a government to reduce the value of its own currency vis a vis other currencies. Devaluation occurs exclusively in fixed currencies, when the currency in question is pegged to another currency. Governments devalue their own currencies to make their exports less expensive in foreign markets. If a company exports its products for the same price in the local (devalued) currency, it is cheaper for consumers to buy those products in their own currency. See also: Depreciation.
References in periodicals archive ?
Currency devaluation, whether in the form of quantitative easing or negative interest rates, greatly appeals to those whose performance is judged by short-term benchmarks rather than long-term goals.
For this reason, people often treat currency devaluation as a win for the devaluing country and a loss for the country whose currency gets more valuable.
It is clear from (5) that currency devaluation will definitely raise domestic output if the interest-sensitive effect on aggregate supply is ignored (i.
The results are clear: to slow down economic growth, call for a currency devaluation.
While some people see the case of Poland as vindication of "shock therapy", good and reasonable people also believe that sudden currency devaluation can have catastrophic effects.
Nevertheless, it is still quite vulnerable to changes in economic policies, currency devaluation and regulatory risk.
He added, 'There is no chance someone in the future pushes a currency devaluation.
CITIZENS REACT "The currency devaluation will certainly affect our business, not only here but in the neighbouring countries as well", said Ahmed Ali, a cement dealer in Juba.
President Hugo Chavez announced a currency devaluation for the first time since 2005, reports AP (Jan.
The country's currency devaluation sparked a huge sell-off at the opening of the trading day, prompting a drop in U.
Should risks of deteriorating C/A balance, increasing inflation and possible currency devaluation materialize in the near future, the present.
Q Why is currency devaluation such a big deal anyway?