Discover how to efficiently protect the budget FX rate with our guide to market-based cash flow hedging programs

Glosario

Currency Devaluation

Currency devaluation is the official lowering of the value of a country’s currency under a fixed exchange rate regime. To the extent that most countries have floating exchange rate regimes, currency devaluations are relatively rare. Under a floating exchange rate system, in which exchange rates are determined by market forces, a decrease in the value of a currency relative to others is called depreciation.