Currency devaluation is when a nation’s government introduces a policy to reduce the value of its currency compared to other currencies. They do this to make exports cheaper and imports more expensive, which, in turn, boosts trade balance and leads to economic growth. For example, if China d...
Also, governments may encourage devaluation if they have a large sum of government-issued sovereign debt, which is hampering the economy. By reducing the value of the currency, it will make debt payments cheaper over time. For example, if the government needs to pay $2 million every month i...
Well, a currency devaluation would help to reduce a country's trade deficit. If a currency's value drops, then exports will become less expensive and imports will become more expensive to people living in the country.An example of a country with a large trade deficit is the United States,...
However, a country should be wary of the negatives of currency devaluation. Currency devaluation may lower productivity, since imports of capital equipment and machinery may become too expensive. Devaluation also significantly reduces the overseaspurchasing powerof a nation’s citizens. Pros More competit...
For example, suppose a foreign government has set 10 units of its currency equal to $1 in U.S. currency. To revalue, the government might change the rate to five units per dollar. This results in its currency being twice as expensive when compared to U.S. dollars than it was previously...
For example, if 100 dollars was exchanged for 300 yuan last year and 400 yuan was exchanged this year, the RMB depreciated. The devaluation of the currency raises prices at home. But because of the currency devaluation can stimulate production under certain conditions, ...
Add example Translations of "devaluation" into Chinese in sentences, translation memory Declension Stem The government has not acknowledged that there has been a considerable increase of prices of goods following a recent devaluation of the local currency against US dollar. 政府试图对于抗争情况轻...
For example, store owners will have to readjust their retail prices on goods they sell whenever there’s a currency collapse like this. However, sometimes people will rush into the store before the stores have had time to readjust prices, and buy up products at the old prices—in your case...
a. “The most obvious example of this took place in 1997-1999 when the devaluation of the currency of Thailand was followed by the collapse of currencies and stock market in Japan, South Korea, then Russia and South America.” . 1997-1999 “此的最明显的例子发生了,当泰国的货币的贬值由货币...
neededmoney expansion.Thedeclineinthevalueofmoney.Fromthe internationalperspective,thevalueofmoneyrepresentedwith foreigncurrencyexchangecapacity,itreflectsthechangein theexchangerate,thecurrencydevaluationreferstoalower unitofdomesticcurrencyandforeigncurrencyexchangeability, currencyforeignexchangeratedecline.Forexample,...