Currency Devaluation

Currency devaluation is when a country's government or central bank intentionally lowers the value of its currency compared to others. This can make a country's exports cheaper and more competitive in the global market, potentially boosting economic growth. However, it can also lead to higher prices for imported goods, causing inflation. Devaluation can be a tool to address trade imbalances but may affect people's purchasing power and savings. Overall, it reflects changes in economic policy aimed at stabilizing or stimulating the economy.