What is Devaluation of Currency and Why it is Done?
When the external value of home currency is reduced it is called devaluation. Its main aim is to correct the deficit in the balance of payment. While depreciation and appreciation takes place automatically according to the movement in the demand and supply of currencies in the market, devaluation and revaluation are done voluntarily by a monetary authority or by government. Basically Devaluation is done to increase export of the country.