Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Revaluation


Wiljor
 Share

Recommended Posts

Good morning,

I just wanted to post this or perhaps, re post this, from Wikipedia. We can take the simple explanation set below or we can try and digest all the news events coming from Irak, read between the lines and make assumptions as to why they have not RV'd yet. And all the news, chatter, change of government, guru predictions, alignment of the stars etc... will not make a difference. If it happens we will all be better off. But in the mean time keeping it real makes the journey a enjoyable one. My appreciation goes to all who contribute educative articles, comments, views, stories, videos and much more, I am more aware of what is taking place over there because of you.

I am still new here, but I have learned more about a country, their currency, way of life, political arena, and so much more that it would have taken years to gather the same information via other sources.

Appreciation takes you a long way, and I sure appreciate being here.

Revaluation

From Wikipedia,

Revaluation means a change of a price of goods or products. This term is specially used as revaluation of a currency, where it means a rise of currency to the relation with a foreign currency in a fixed exchange rate. In floating exchange rate correct term would be appreciation. Altering the face value of a currency without changing its foreign exchange rate is a redenomination, not a revaluation.

In general terms, revaluation of a currency is a calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. central bank) can alter the official value of the currency. Contrast to "devaluation".

For example, suppose a government has set 10 units of its currency equal to one US dollar. To revalue, the government might change the rate to five units per dollar. This would result in that currency being twice as expensive to people buying that currency with U.S. dollars than previously and the US dollar costing half as much to those buying it with foreign currency.

Before the Chinese government revalued the yuan, it was pegged to the US dollar. It is now pegged to a basket of world currencies.

Today is a great day, because you say it is :-)

  • Upvote 3
Link to comment
Share on other sites

Thanks

I've read that before and this part is where I was attacked for posting

But it is true

,,,,,,,,,,,,,,,,,,,,,

Altering the face value of a currency without changing its foreign exchange rate is a redenomination, not a revaluation

So

If they change the face value from a 25k note to a 25 note >> "without"<<

Changing the foriegn exchange rate

Is a redenomination

So if the exchange rate is 1166

And they change the 25 k note to a 25 note and the exchange rate is still 1166 then its a redenomination

....---...---...

So if they change the face value for a 25 k note to a 25 note and the exchange rate is no longer 1166 then its a revaluation

I'm telling ya

That's a hard one to explain around here

  • Upvote 3
Link to comment
Share on other sites

Thanks

I've read that before and this part is where I was attacked for posting

But it is true

,,,,,,,,,,,,,,,,,,,,,

Altering the face value of a currency without changing its foreign exchange rate is a redenomination, not a revaluation

So

If they change the face value from a 25k note to a 25 note >> "without"<<

Changing the foriegn exchange rate

Is a redenomination

So if the exchange rate is 1166

And they change the 25 k note to a 25 note and the exchange rate is still 1166 then its a redenomination

....---...---...

So if they change the face value for a 25 k note to a 25 note and the exchange rate is no longer 1166 then its a revaluation

I'm telling ya

That's a hard one to explain around here

Thanks dontlop,

Just thought I would put it out there to re establish for some, what is what.

  • Upvote 1
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.