A country facing a balance of payments deficit will change the pegged value of its currency; this is called a revaluation.

Question

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A country facing a balance of payments deficit may change the value of its currency, but this is called a devaluation, not a revaluation. Revaluation is when a country increases the value of its currency in relation to another currency or a standard value such as gold.

A Country Facing a Balance of Payments Deficit Will Change