What is Devaluation

What is Devaluation?

What is Devaluation?

  1. Soon we will know and feel everything.
  2. The depreciation of the national currency against other currencies. The meaning is supposedly to make Russian goods abroad cheaper in the currencies of other countries, so that they fall there in price and are better sold. During the devaluation, it is better not to keep money in devalued currency, as their value is reduced.
  3. DEVALVATION devaluation - lowering the value of the national currency, produced by the Central Bank under the fixed exchange rate system
    Devalva # 769 (English value value) (Latin de deed + Valeo to have value, cost) the method of stabilizing the national currency, the opposite of revaluation, the essence of which is to lower the official rate of paper money to their real value, that is, currencies in relation to hard currencies, international accounting units; a decrease in the real gold content of the monetary unit.

    The devaluation of the ruble in Russia is made by the Central Bank. The ruble exchange rate is tied to a basket of currencies, where 55% of dollars and 45% of euro. The Central Bank set a floating ruble rate, but within the limits of the currency corridor. To conduct the devaluation of the ruble, it is necessary to expand the currency corridor, that is, to set the minimum and maximum value of the ruble in relation to the basket of currencies, then the ruble rate is determined in the currency trading.
    The devaluation and inflation

    The term inflation is close in meaning to the term devaluation, but the former is more often referred to as the value of money in the national region, and the latter to international markets. In fact, both are characterized by an increase in prices. Often, currency devaluation can be one of the causes of inflation within the country. Another difference from inflation is that devaluation is a deliberate measure on which the Central Bank is going, and inflation, as a rule, is a spontaneous phenomenon, difficult to control by the state
    There are official (open) and hidden devaluations.

    With an open devaluation, the Central Bank of the country officially declares the devaluation of the national currency, the depreciated paper money is withdrawn from circulation or the exchange of such money for new, stable loan money (but at a rate corresponding to the depreciation of old money, that is, lower).

    With hidden devaluation, the state reduces the real value of the monetary unit in relation to foreign currencies, without withdrawing the depreciated money from circulation.

    Open devaluation causes a decline in commodity prices, hidden devaluation does not in itself lead to a change in prices.
    The reasons for the devaluation of the national currency may be inflation or a deficit in the balance of payments. Although the devaluation is caused by macroeconomic factors, the direct depreciation is triggered by the decision of the regulatory authorities in the country. Such a decision could be an official reduction of the rate fixed by the country's leadership, a refusal to support the exchange rate, a refusal to link the exchange rate to the currencies of other countries or currency baskets in order to reduce the deficit of the country's balance of payments, improve the competitiveness of manufactured goods on the world market, and stimulate domestic production.
    Under the risk of currency devaluation is understood the risk of a sharp stressful depreciation of the currency relative to other currencies. The possibility of assessing the risk of devaluation essentially depends on the form in which it takes place. The reduction of the fixed rate by the country's leadership can be predicted in advance; The spontaneous devaluation caused by the inability of the regulatory authorities to support the exchange rate is difficult to assess.
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    On expectations of a sharp drop in the exchange rate, investors are beginning to invest in more tangible media. But, nevertheless, this is an extreme measure.

  4. DEVALENCE (from the de .. and Latin valeo I mean, I stand), the depreciation of the national currency against any foreign currency, gold. The causes of the devaluation of inflation, the lack of balance of payment.
  5. question to a question. and why a stark question for example in google.ru does not pay?
  6. Devalva # 769 (English value value) (Latin de deed + Valeo to have value, cost) the method of stabilizing the national currency, the opposite of revaluation, the essence of which is to lower the official rate of paper money to their real value, that is, currencies in relation to hard currencies, international accounting units; a decrease in the real gold content of the monetary unit.

    The devaluation of the ruble in Russia is made by the Central Bank. The ruble exchange rate is tied to a basket of currencies, where 55% of dollars and 45% of euro. The Central Bank set a floating ruble rate, but within the limits of the currency corridor. To conduct the devaluation of the ruble, it is necessary to expand the currency corridor, that is, to set the minimum and maximum value of the ruble in relation to the basket of currencies, then the ruble rate is determined in the currency trading.

  7. DEVALUATION
    DEVALVATION - 1) decrease in the value of the national currency in relation to the world monetary standard; 2) decrease in the official exchange rate; the method of stabilizing the currency after inflation: open D. - withdrawal from circulation or exchange of depreciated paper money for stable loan money, which in some way keeps the connection with gold at a rate that corresponds to the actual depreciation of money; hidden D. - the reduction by the state of the real gold content of the monetary unit in accordance with the depreciation of paper money (while the previous paper money remains in circulation). Contextual advertising Runner
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    DEVALUATION
    the official depreciation of the national currency against foreign currencies. Prior to the abolition of gold parities, DEVALVATION occurred simultaneously with a decrease in the gold content of the currency. The causes of DEVALENCE - the uneven development of inflation in individual countries, the deficit of balance of payments.

  8. Devalva # 769 (English value value) (Latin de deed + Valeo to have value, cost) the method of stabilizing the national currency, the opposite of revaluation, the essence of which is to lower the official rate of paper money to their real value, that is, currencies in relation to hard currencies, international accounting units; a decrease in the real gold content of the monetary unit.

    The devaluation of the ruble in Russia is made by the Central Bank. The ruble exchange rate is tied to a basket of currencies, where 55% of dollars and 45% of euro. The Central Bank set a floating ruble rate, but within the limits of the currency corridor. To conduct the devaluation of the ruble, it is necessary to expand the currency corridor, that is, to set the minimum and maximum value of the ruble in relation to the basket of currencies, then the ruble rate is determined in the currency trading.



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