0
Governments devalue their currency to make debt repayment less costly. Devaluation causes inflation which hurts the value of existing bonds including Government Bonds (e.g. USA Government Treasury Bills). So the government pays back debt in dollars that are worth less. Also, the inflation increases nominal tax revenue that hurts the nation's comsumers as savings is destructed.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Why devalue its currency?
You want to devalue your currency to make your good cheaper then competitors. Keeping your currency low increases demand for your products and creates jobs and economic growth.
How currency get value?
Governments issue currency, and if you trust the government, you will trust its currency.
Why would a Country like to devalue its currency?
A country would want to change its currency value, so it would lessen its world wide debt, and that lots of migrants can come into their country
What can the government do to reduce balance of payment deficit?
Devalue currency to make import costilier and export more profitable also short term borrowing for immediate requirements.
What does devalue mean?
Devalue means to reduce the value.
Why devalue its currency?
You want to devalue your currency to make your good cheaper then competitors. Keeping your currency low increases demand for your products and creates jobs and economic growth.
How would you put devalue in a sentence?
Because of the economic situation, the government decided to devalue their currency.
How currency get value?
Governments issue currency, and if you trust the government, you will trust its currency.
A government may its currency to correct its balance-of-payments conditions?
devalue
What is one alternative to a currency crisis?
One alternative to a currency crisis or to continuing to try to support a fixed exchange rate is to devalue unilaterally.
Why was the governments currency the continental worthless to Americans citizens?
becouse it can HAHAHAHAHAHAHAHA
How is the conversion between foreign currency regulated?
Governments and banks determine the convertibility of currency. Depending on the country, currency may be fully or partially convertible. In several countries, currency is nonconvertible.
Why would a Country like to devalue its currency?
A country would want to change its currency value, so it would lessen its world wide debt, and that lots of migrants can come into their country
What was a symbol representing gold silver and the governments promise to pay?
Paper Currency
What was a symbol representing gold silver and governments promise to pay?
Paper Currency
Will the exchange rate get better?
Currency exchange rates are tied to the economies of the respective governments that print each currency. They are only predictable as far as those economies are predictable.
What fiscal policy can be enacted to boost exports?
By devaluation of currency exports of a country can be increased because when we devalue currency our products become cheaper for foreigners and they purchase more of them. A loose fiscal and monetary policy will help in increasing the exports of a country.
