TopicExchange rates & FX
abwertung · /ˈapˌveːʁtʊŋ/
abwertung
abwertung/ˈapˌveːʁtʊŋ/noun
official reduction of a currency's fixed exchange value
offizielle Abwertung eines festen Wechselkurses
Used under pegs or managed regimes more than pure free floats.
Häufiger bei Pegs oder gemanagten Systemen als bei reinem Float.
Examples
A sudden devaluation raised the cost of imported fuel overnight.
The central bank denied plans for devaluation after the rumor.
History shows devaluation can boost exports but stoke inflation.
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