Southwest Firearms
Gun Deals
Simply Triggers
Oregon Rifleworks
Sporting Systems
HighLine Firearms
J&B Firearm Sales
DSG Arms
Defensive Arts
Advertise on Northwest Firearms
Buster Beaver Cerakote
Low Price Guns
In modern monetary policy, a devaluation is 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 or currency basket. In contrast, a depreciation is a decrease in a currency's value (relative to other major currency benchmarks) due to market forces under a floating exchange rate, not government or central bank policy actions.
A central bank maintains a fixed value of its currency by standing ready to buy or sell foreign currency with its own currency at a stated rate; a devaluation is a change in this stated rate that renders the foreign currency more expensive in terms of the home currency.
The opposite of devaluation, a change in the fixed rate making the foreign currency less expensive, is called a revaluation.
Related but distinct concepts include inflation, which is a market-determined decline in the value of the currency in terms of goods and services (related to its purchasing power). Altering the face value of a currency without reducing its exchange rate is a redenomination, not a devaluation or revaluation.

View More On Wikipedia.org
  1. ATCclears

    Notes from a 1982 currency collapse in Mexico

    I Survived an Economic Collapse - Mexcico Devaluation I Survived an Economic Collapse - Mexico Currency Devaluation 1982 Lesson: Rules can be broken
Sporting Systems
Copeland Custom Gunworks
Project Appleseed
DSG Arms
Cerberus Training Group
NW Custom Firearms
Southwest Firearms Forum
Advertise on Northwest Firearms
Top