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Devaluation Definition Example - InvestingAnswers 
If Country XYZs currency is set at a fixed exchange rate of 2:1 to the U. S. dollar and, due to a weak economy, XYZ cannot afford to pay the interest rate on its debt outstanding, XYZ may devalue their currency. This means the central bank of XYZ will declare their fixed exchange rate to be 10:1 to the U. S. dollar.   more



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