Undervalued Currency

Undervalued Currency

A currency with an exchange rate lower than it ought to be. A currency may be undervalued, for example, when its purchasing power, supply and demand are all strong, but its price is still comparatively low. Some governments keep their currencies undervalued deliberately because it makes their exports less expensive, but this is usually an unsustainable policy. See also: Weakening of a currency.
References in periodicals archive ?
Summary: Even the European Union has made similar complaints about Beijing's undervalued currency.
On the issue of currency devaluation, she said undervalued currency is an anti-export measure.
With respect to the currency exchange rate, Caroline termed the undervalued currency as a part of anti-export policies saying that if a currency of any country is undervalued, the imports would get cheaper and the exports would get costlier and would ultimately discourage the exporters.
With respect to the currency exchange rate, Caroline termed the undervalued currency as a part of anti export policies saying that if a currency of any country is undervalued, the imports would get cheaper and the exports would get costlier and would ultimately discourage the exporters.
But for medium- to long-term investors, especially those from overseas who can benefit from the undervalued currency, we believe there is an attractive window of opportunity to enter the market.
Furthermore, China's BRICS partners face keen competition from cheap Chinese-manufactured goods (intensified by what many view as China's undervalued currency).
and an undervalued currency. Taiwan has world class companies like Acer, Hon Hai, TSMC and numerous suppliers and component manufacturers critical to Silicon Valley's high tech ecosystem.
For more than a decade, Washington has pressured China, alleging an undervalued currency. An undervalued yuan or renminbi made Chinese exports cheap in dollars - hence a flood of low-cost imports from China.
that China's undervalued currency has been a major factor in the
Thus, German exports are being indirectly subsidized and stimulated and German imports inhibited by an artificially and systematically undervalued currency.
"In this region, there's a lot of interest in the rupee and I think it's a very undervalued currency. I think the India situation is very much under-appreciated; the market's done very well.
Lardy pointed out that 'the surpassing of the US is not because of a substantially undervalued currency that has led to an export boom,' pointing out that Chinese imports have grown at a faster rate than exports since 2007.