(08-22-2019, 01:29 PM)Senor Fantastico Wrote:

(08-20-2019, 08:32 PM)EricC85 Wrote: I don' t understand why a country would devalue their currency. I know there's some economic answer it just baffles me, how is making your currency less valuable an advantage?

You know when you see that gas station that has prices 10 cents lower than all the others and it has cars lining up in the lot? 

Something like that.

Somewhat.

To answer Eric's question in a nutshell.

Devaluing their currency means that their exports are less expensive, therefor they are more attractive to other countries.  At the same time imports to that country become more expensive.  It also reduces the burden of the country's debt.  As an example, an interest payment of $1 million dollars becomes worth $500,000 if the country reduced the value of their currency in half.

This article explains it pretty well in layman's terms.

---