An increase in the official value of a currency in a fixed-exchange-rate system is called a(n)

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In a fixed exchange rate system, when the official value of a currency is increased, it is called a revaluation. This is because the exchange rate is fixed and the government or central bank is adjusting the value of the currency in relation to the fixed rate. A devaluation would occur if the official value of the currency were decreased. Appreciation and depreciation are usually used to describe changes in exchange rates in a floating exchange rate system, where the value of a currency is determined by market forces. Overvaluation refers to a situation where the official value of a currency is higher than its market value, which can lead to a decrease in demand for the currency.

An Increase in the Official Value of a Currency in a Fixed-Exchange-Rate