From the course: Economic Tips for Everyone

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Devaluing currency

Devaluing currency

From the course: Economic Tips for Everyone

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Devaluing currency

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- Maybe you've heard the term currency devaluation, it means that one currency is losing strength against other currencies. Devaluation often happens when one government is printing more money than another, or it can happen when one country's central banks interest rates are lower than another. It can also happen when one central bank is doing more quantitative easing than another. You might think it's bad when your currency loses value, but it doesn't have to be. In fact, there are some ways that it can actually be good. Of course, if you import stuff a weaker currency can make foreign goods more expensive, but as an exporter, a weaker currency makes your goods cheaper and you might do more business, and foreign tourists will probably feel richer when they come to your country. If you're an American and the dollar is devalued that could be really bad if you like to buy French cheese and German cars, because they will cost…

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