The official decision by a country’s monetary authorities to reduce the value of the domestic currency in relation to foreign currencies, i.e. to reduce the foreign currency equivalent of the domestic currency. e.g. if the U.S. dollar is devalued in relation to the French franc, one dollar will "buy" fewer francs than before. Opposite: Revaluation. Compare with Depreciation. Français: Dévaluation Español: Devaluación
Depreciation. A fall in the value of a currency that has been pegged, either because of an announced reduction in the par value of the currency with the peg continuing, or because the pegged rate is abandoned and the floating rate declines. A fall in the value of a currency in terms of gold or silver, meaningful only under some form of gold standard or silver standard.
When a Central Bank abandons the pegging of its currency to a fixed rate of exchange, resulting in a significant drop in its currency's value (example: Argentine Peso 2002). Also used when a government actively promotes a dramatic decline in its country's exchange rate (example: Japanese Yen 2001-2002).
The official lowering of the value of one country's currency in terms of one or more foreign currencies. For example, if the U.S. dollar is devalued in relation to the French franc, one dollar will "buy" fewer francs than before.
Refers to the action taken by a country via its central bank or monetary board which reduces the value of its currency vis a vis other currencies. Often, the result is more abrupt than would occur within a floating rate framework.
By devaluing a nation's currency, exports become cheaper to other countries, while imports become more expensive. Currency depreciation tends to achieve the effects, temporarily at least, of both a tariff (raising import prices) and an export subsidy (lowering the costs of exports). Dumping The practice of selling an item for less abroad than at home. Dumping is an unfair trade practice when it is used to drive out competitors from a market.
A reduction of the official value of currency by government action under a fixed exchange rate system.Äåâàëüâàö³ÿÇíèæåííÿ îô³ö³éíîãî óñòàíîâëåíîãî êóðñó îáì³íó âàëþòè íà îñíîâ³ ð³øåííÿ óðÿäó â óìîâàõ ä³¿ ñèñòåìè òâåðäèõ âàëþòíèõ êóðñ³â.
The drop in the value of one currency relative to another. Developing countries have often been encouraged to devalue their currency as part of IMF / World Bank structural adjustment programs as a means of increasing the costs of imports and decreasing the cost of exports, thereby increasing competitiveness.
The reduction in the exchange value of currency by lowering its gold- or hard-currency equivalency. A country may "prop-up" or overvalue its currency by using US dollars (or other "hard currency") to buy up their own currency. This makes the value of their currency artificially high.
When the value of a currency is lowered against another currency, that is it takes more units of the currency to buy the same comparable foreign currency. Devaluation usually arises from government policy. Governments quite often use devaluation as a technique to improve the country's balance of trade position as exports will become cheaper in foreign markets.
Devaluation is when a country actively drops the value of their currency in an effort to stave off economic collapse. When a currency's value is dropped, it can be bought and sold at cheaper prices, which in theory will attract more investors. Currencies are sometimes devalued to make industry more attractive to foreign investors.
The fall in the value of a currency that occurs when the government declares that its domestic currency will buy fewer units of a foreign currency. Such a policy involves government intervention to peg its currency (that is, fix its exchange rate). Many governments peg their domestic currencies to a stable currency, such as the U.S. dollar or the German mark. See depreciation and exchange rate.
Lowering of the value of a country's currency relative to the currencies of other nations. When a nation devalues its currency, the goods it imports become more expensive, while its exports become less expensive abroad and thus more competitive.
When the value of a currency is lowered against the other, not because of the changes in demand or supply in foreign exchange market. Devaluation often occurs when the government use it as a policy to enhance its trade surplus or to reduce its trade deficit.
When the value of a currency is lowered against the other, i.e. it takes more units of the domestic currency to purchase a foreign currency. This differs from depreciation in that depreciation occurs through changes in demand in the foreign exchange market, whereas devaluation typically arises from government policy. A currency is usually devalued to improve the balance of trade, as exports become cheaper for the rest of the world and imports more expensive to domestic consumers.
Devaluation is a deliberate decision by a government or central bank to reduce the value of its own currency in relation to the currencies of other countries. Governments often opt for devaluation when there is a large current account deficit, which may occur when a country is importing far more than it is exporting. When a nation devalues its currency, the goods it imports, and the overseas debts it must repay, become more expensive. But its exports become less expensive for overseas buyers. These competitive prices often stimulate higher sales and help to reduce the deficit.
A decrease in a currency value relative to another currency in a fixed exchange rate system. The purpose of devaluation typically is to increase export and decrease import in order to correct a balance of payment deficit.
In relation to the currencies of other countries, the declining value of a particular country's currency. It can also be caused by another country's currency rising in value as compared to the currency value of a specific country.
Devaluation is a reduction in the value of a currency with respect to other monetary units. In common modern usage, it specifically implies an official lowering of the value of a country's currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. In contrast, (currency) depreciation is most often used for the unofficial decrease in the exchange rate in a floating exchange rate system.