Raising the value of a country's currency under a fixed exchange rate system is known as: Revaluation
Revaluation occurs when a country's central bank or monetary authority officially increases the value of its currency in terms of other foreign currencies. This is done under a fixed exchange rate system to adjust the value of the currency upward.
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Devaluation:
- Explanation: Devaluation is the opposite of revaluation. It occurs when a country's monetary authorities officially reduce the value of its currency in terms of other foreign currencies. This is typically done to boost exports by making them more competitive on the international market and to address trade imbalances.
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Appreciation:
- Explanation: Appreciation refers to an increase in the value of a country's currency in a floating exchange rate system. In a floating exchange rate regime, currency values are determined by market forces.
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Depreciation:
- Explanation: Depreciation is the opposite of appreciation. It refers to a decrease in the value of a currency in a floating exchange rate system.
