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What is devaluation?
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What is devaluation?
Devaluation is the act of intentionally reducing the value of a country's currency relative to other currencies. This is typically done by the central bank or other monetary authority of the country, and is usually done in order to make the country's exports more competitive in international markets.
When a country devalues its currency, it means that the same amount of the currency will buy fewer foreign currency units than it did before the devaluation. For example, if a country's currency is devalued by 10%, it means that the same amount of the currency will buy 10% fewer foreign currency units than it did before the devaluation.
Devaluation can have both positive and negative effects on a country's economy. On the one hand, it can make exports more competitive and stimulate economic growth. On the other hand, it can also lead to higher inflation, as imported goods become more expensive, and it can erode the value of people's savings and investments.
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What is devaluation? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is devaluation? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is devaluation?.
What is devaluation? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is devaluation? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is devaluation?.
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