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currency revaluation (F3)
A deliberate increase in the price of a currency with a fixed exchange rate. This is undertaken to reduce a balance of payments surplus. Revaluation is often urged by countries in deficit to enable them to compete more easily in international markets. As a consequence of a revaluation, a CENTRAL BANK suffers losses from the fall in value of its foreign exchange holdings: taxpayers ultimately bear these losses as central banks are usually owned by governments.
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