14.07.2015 - All you wanted to know about currency devaluation
There’s no light at the end of the tunnel yet on Greece’s debt problem. With the referendum over, the issue is back to square one — How will Greece repay its mountain of debt? One opinion is that Greece must exit the Euro, adopt its earlier currency — drachma and ‘devalue’ itself out of trouble. What is it? Devaluation refers to the act of a country voluntarily reducing the value of its currency vis-à-vis a basket of other international currencies. Therefore, if the rupee were to devalue, it would get cheaper against the dollar, pound sterling or the euro. If Greece returns to the drachma, the currency would have to be devalued by as much as 40-45 per cent against the Euro...............................................Full Article: Source
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