The devaluation of the ruble, which affects it

The devaluation of the ruble, which affects it

Initially, the term "devaluation" was strongis tied to gold, the less was the link of the country's monetary unit to this metal, the more devaluation became. The devaluation of the ruble is not an exception in this concept. In our time, this term is applicable when the country's money is losing its purchasing power strongly against hard currencies, to which the euro and the US dollar are to be attributed. If you listen to some tips, you can improve your financial situation.

The devaluation of the ruble.Reducing the purchasing power of yoursavings. This will be a devaluation. Devaluation is a more capacious concept than inflation. It deals with the relationship of a monetary unit with other currencies. These processes do not belong to the same territory, they determine the exchange value of different currencies. With trade deterioration of the balance of the country, developing inflation, devaluation may occur. In some cases, devaluation helps governments to regulate the value of the national currency. This became possible when the gold cash equivalent was canceled. It occurs not only as a result of macroeconomic indicators, but also regulated by government agencies. So officially reduce the rate of money: the national currency is simply not supported in interbank trades, the rate is not tied to the currencies of other countries and so on.

Devaluation in Belarus.What is the devaluation of the ruble? By bringing this tool into action, it is possible to stimulate imports, the country's currency will fall in price and, as a consequence, will be in demand in foreign markets. This increases the balance of payments, there is an increase in exports, there are new jobs. The balance of payments of the state is improving. The import is falling in price. Produced goods become more competitive.

There are two types of devaluation: hidden and open. Open is when the government officially informs about it. Discounted money is being recovered. They are withdrawn from the interbank circulation, they are exchanged for new ones. Only at an undervalued rate, the percentage of devaluation is taken into account.

Hidden - reduces the cost of currency notes byrelation to hard currencies, but old money is not withdrawn from circulation. With an open devaluation, there is a fall in prices for goods in relation to hard currencies. Concealed, on the contrary, increases their cost

Currency devaluation.Now, what is the devaluation of the currency, we know, it also carries negative phenomena, especially if not controlled. The devaluation of the ruble and its side effects are expressed in this form:

- is a provocateur of inflation and increases its growth rates. Production produced in the country is cheaper and it is necessary to increase the rate of production growth;

- the population loses confidence in the national currency;

- there is a decrease in the importedproducts. It increases in price. This will seriously affect the enterprises of the country and the entire population. Especially it will affect manufacturers who purchase foreign technologies and components for their production;

- the population begins to uncontrollably withdraw their savings in banks and buy up currency. This further increases its value;

- there is a reduction in wages and pensions, the purchasing power is significantly reduced.

Devaluation in Belarus showed an exampleuncontrollable situation. Although for the economy, controlled devaluation sometimes benefits. The devaluation of the ruble in Russia took place in 1998 and many lost their savings. Watch the exchange rate and draw conclusions.

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  • The devaluation of the ruble, which affects it The devaluation of the ruble, which affects it The devaluation of the ruble, which affects it The devaluation of the ruble, which affects it The devaluation of the ruble, which affects it The devaluation of the ruble, which affects it