In the Currency Revaluation?
Devaluation, the Deliberate Downward Adjustment in the Official Exchange Rate, Reduces the Currency's Value; in Contrast, a Revaluation Is an Upward Change in...
Devaluation, the deliberate downward adjustment in the official exchange rate, reduces the currency's value; in contrast, a revaluation is an upward change in the currency's value. For example, suppose a government has set 10 units of its currency equal to one dollar.
What is meant by currency revaluation?
A revaluation is a calculated upward adjustment to a country's official exchange rate relative to a chosen baseline, such as wage rates, the price of gold, or a foreign currency. In a fixed exchange rate regime, only a country's government, such as its central bank, can change the official value of the currency.
Is revaluation of currency good or bad?
When a government conducts a revaluation, or revalues its currency, it changes the fixed exchange rate in a way that makes its currency worth more. Since the exchange rates are usually bilateral, an increase in the value of one currency corresponds to a decline in the value of another currency.
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