Many of the blogs I write are based on real-world content that Advantexe is creating for our global clients. This week, we are launching a brand-new business acumen simulation on the topic of devaluation. The reason we are building this simulation is to help global leaders understand what devaluation is and what they can do about it in the short term and long term. In the world of global macroeconomics, there are uncontrollables like inflation and there are controllables like interest rates and devaluation. Understanding these terms and impacts provides a stronger base of business acumen skills.

I’ve taken the best excerpts of the content to share with you in this blog.

What is Devaluation?

Devaluation is a deliberate downward adjustment of a country's currency value relative to another currency, group of currencies, or standard such as precious metals like gold and silver.

This is typically done by the country's government or central bank and can occur for various reasons, such as improving the country's trade balance by making exports cheaper and imports more expensive, addressing trade imbalances, or responding to economic pressures.

Devaluation is not a friend of businesses that are trying to expand and grow in a region whose government is trying to use devaluation as a way to stabilize the economy.

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