If a currency's exchange rate is overvalued, a government would likely initiate actions to revalue the currency.

Name: If a currency's exchange rate is overvalued, a government would likely initiate actions to revalue the currency.
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An overvalued currency means it is stronger than perhaps it should be, making imports cheaper and exports more expensive. Governments might intervene to devalue rather than revalue the currency to correct this imbalance and improve competitiveness.

If a Currency's Exchange Rate Is Overvalued, a Government Would