Devaluation of a domestic currency means:
- Areduction in the value of a currency vis-a-vis major internationally traded currencies
- Bpermitting the currency to seek its worth in the international market
- Cfixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined goods
- Dfixing the value of currency in multilateral consultation with the IMF and World Bank
Solution & Step-by-step Explanation
Devaluation is the deliberate downward adjustment of the official exchange rate value of a country's currency relative to a baseline foreign currency or a basket of major internationally traded standard currencies.