What is a devaluation?

1. A government may step in if it decides its currency is not properly valued. 2. In a devaluation the nation lowers the value of its currency relative to other currencies. 3. That makes the exports of the country cheaper for foreign buyers. 4. Cheaper exports should in turn help the balance of payments. 5. A rise in value is an appreciation, not a devaluation. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.1 Global Trade in the United States_