What is a deliberate decrease in the value of a currency?
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A deliberate decrease in the value of a currency is known as currency devaluation. Currency devaluation is typically carried out by a country's central bank or government and involves lowering the exchange rate of its currency relative to other currencies or a fixed standard, such as gold. Currency devaluation can be used as a tool to make a country's exports more competitive in international markets, as it makes them less expensive relative to goods produced in other countries. However, currency devaluation can also lead to higher inflation and reduced purchasing power for consumers, as imported goods become more expensive.
A deliberate decrease in the value of a currency is called Currency Depreciation. It is a deliberate action taken by the central bank of a country to reduce the value of its currency relative to other currencies in the foreign exchange market. This is often done in order to make the country's exports cheaper and more attractive to foreign buyers, thereby improving the balance of trade and boosting economic growth. However, currency depreciation can also lead to increased inflation and higher import costs.