Devaluation

21.07.2017

The term Devaluation is used to mean a central bank’s manipulation of the value of its country’s currency in order so that it decreases in relation to other currencies or the gold standard. This can be done covertly or overtly. When a devaluation takes place overtly, the central bank announces the devaluation, if covertly, it ceases to withdraw currency from circulation in order to decrease its real value.

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