National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.

Question

Quizplus · Accepted Answer

By devaluing their currency, a country can make its exports cheaper and more competitive in the global market, which can increase demand for its goods abroad. Additionally, a weaker currency can attract foreign investors looking for higher returns on investments in the country's assets.

National Governments Sometimes Take Deliberate Action to Devalue Their Currencies