Invest part of your portfolio in the stock market. Even though it’s risky, the risk-adjusted returns often outpace inflation. Purchase Treasury Inflated Protected Securities and Series I Bonds from the U.S. Department of the Treasury. These are two sound ways to protect yourself from inflation. How do you hedge dollarRead More →
Apart from boosting exports, devaluation improves country’s trade balance and helps build forex reserves. … In order to stimulate the exports, the domestic output is encouraged thereby improving employment. Import substitution takes priority and thus increasing the gross domestic product (GDP) of the economy. Who benefits from devaluation? The mainRead More →
Devaluation, the deliberate downward adjustment in the official exchange rate, reduces the currency’s value; in contrast, a revaluation is an upward change in the currency’s value. A key effect of devaluation is that it makes the domestic currency cheaper relative to other currencies. What is the effect of devaluation onRead More →