Valutaværdiforarmning

Valutaværdiforarmning, often translated as currency devaluation, refers to the deliberate downward adjustment of a country's currency value relative to other currencies. This is typically an official action taken by a government or its central bank. It is distinct from depreciation, which is a decline in a currency's value due to market forces.

The primary motivation for devaluation is often to boost exports and reduce imports. By making a country's currency cheaper, its goods and services become more affordable for foreign buyers, potentially increasing export volumes. Conversely, foreign goods and services become more expensive for domestic consumers, which can discourage imports and help improve the trade balance.

Another reason for devaluation can be to attract foreign investment. A weaker currency can make a country's assets, such as real estate or businesses, appear cheaper to foreign investors, potentially leading to increased capital inflows. Devaluation can also be used to combat deflationary pressures or to make a country's debt obligations denominated in foreign currencies less burdensome to repay.

However, devaluation also carries risks. It can lead to inflation, as imported goods become more expensive, raising the cost of living. It can also erode the purchasing power of citizens abroad and may trigger retaliatory devaluations by other countries, leading to currency wars. Furthermore, a sustained pattern of devaluation can damage a country's international credibility.