Terms Beginning With 'd'

Devaluation

  • January 11, 2020
  • Team Kalkine

An official move to lower the exchange value of a currency relative to another currency, is referred to as devaluation. The prices of the domestic country’s products and services fall in foreign markets as a result of devaluation.

Central banks make their currency less valuable to boost export volumes in the economy. Though devaluation fosters the balance of payments situation of a country, it makes inflation worse for imported goods.

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