Devaluation is the deliberate downward adjustment of the value of a country's money relative to another currency, group of currencies, or currency standard. Countries that have a fixed exchange rate or semi-fixed exchange rate use this monetary policy tool. It is often confused with depreciation and is the opposite of revaluation , which refers to the readjustment of a currency's exchange rate. The government of a country may decide to devalue its currency. Unlike depreciation, it is not the result of nongovernmental activities. One reason a country may devalue its currency is to combat a trade imbalance.
Economic Effects of Devaluation of Rupee Against Dollar in Pakistan
Currency Devaluation – Effects and Consequences - QS Study
On 8 November , Indian Prime Minister Narendra Modi announced that high value currency notes would be withdrawn from the financial system overnight. He said it was part of a crackdown on corruption and illegal cash holdings. A year later, economist Praveen Chakravarty looks at the legacy of the controversial move. Technically it is not demonetisation but a refurbishment. This move impacted more than a billion people. The "great Indian demonetisation" of will rank among the most impactful economic policy decisions of any country in recent history. In his speech on 8 November , Mr Modi said the primary motives for demonetisation were threefold - to eradicate black money, remove counterfeit currency, and stop terror financing.
Now it is possible to share your thoughts. Rupee Devaluation or Depreciation. Have you ever wondered why rupee is falling? Who fixes the value of the Indian rupee as Rs. We shall see in this article, the difference between Rupee Devaluation and Rupee Depreciation.
In: Business and Management. Assignment Currency Devaluation Introduction Devaluation refers to a decrease in a currency's value. A currency devalues when its value declines in relation to one or more other currencies.