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Discuss the effects of revaluation of currency

      

Discuss the effects of revaluation of currency

  

Answers


Cynthia
Revaluation of currency is the upward adjustments of a currency value relative to the chosen baseline, which for instance can be a foreign currency can be a baseline. Currency revaluation can be caused by the changes in interest rates between countries which will affect the overall profitability of an economy. Revaluation of currency effects to less expensive import by the local consumers from foreign countries and less exports to the country hence create balance of trade. It also helps in changing of the market source for exports of goods creating new markets, revaluation of currency hence help create competitiveness.
CYNTHIAEXPERT answered the question on March 8, 2018 at 11:59


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