Financial Terms

Devaluation

This action is usually taken to achieve a more favorable balance of trade and increase competitiveness in the international market. Devaluation, a term often used in the world of finance, refers to the deliberate decrease in the value of a fixed currency by a country's Central bank or Government. This strategic move is typically made in order to improve the country's trade balance and make their goods and services more competitive in the global market. Ultimately, devaluation is a tool used to boost a country's economic standing and enhance their position in the international arena.

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