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Devaluation

• 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.

• A decrease in the spot price of the currency.

 
 Embedded terms in definition
 Currency
Floating rate
Its
Spot price
 
 Referenced Terms
 Beggar thy neighbor devaluation: A Devaluation that is designed to cheapen a nation's currency and thereby increase its exports at other countries' expense and reduce imports. Such devaluations often lead to trade wars.

 
 Related Terms
 Beggar thy neighbor devaluation

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