Devizno

Devizno refers to foreign currency, particularly in the context of a country's economic policy and financial markets. The term is commonly used in Slavic languages, translating directly to "foreign exchange." In a national economy, devizno holdings represent a country's reserves of foreign currencies held by its central bank or monetary authority. These reserves are crucial for managing the exchange rate of the national currency, facilitating international trade and payments, and acting as a buffer against economic shocks.

The management of devizno is a key responsibility of the central bank. This involves decisions on how to accumulate, hold, and utilize these foreign currency assets. For example, a central bank might intervene in the foreign exchange market by buying or selling devizno to stabilize its own currency's value. If the national currency is depreciating too rapidly, the central bank might sell foreign currency reserves (devizno) to increase demand for its own currency. Conversely, if the currency is appreciating too much, it might buy foreign currency.

Furthermore, devizno plays a significant role in international transactions, such as importing goods and services or servicing foreign debt. Businesses and individuals often need to acquire devizno to make payments abroad. Exchange rates, which determine how much of one currency can be exchanged for another, are a central element in the concept of devizno. The availability and cost of devizno directly impact the competitiveness of a nation's exports and the price of its imports.