Many governments weighed the pros and cons of returning to par versus devaluation
, the latter involving the problematic selection of a new parity.
The theoretical literature on devaluation
has involved an appeal to the Correspondence Principle for many years.
One final thing to note here is that the exchange rate is an exogenous variable and devaluation
of the domestic currency is always an unanticipated event.
If we used the seventies as a model for the most likely direction of the economy today - which I think is very appropriate - and assumed a similar devaluation
in the dollar (and bull market in gold), the upside in gold shares is probably enormous.
The company's other large markets in Asia are the Philippines, Sri Lanka, Bangladesh, India and Pakistan, all of which have experienced recent devaluations
to a lesser extent.
25, 1995--In a comment released today, Moody's stated that it does not anticipate any ratings changes for Texas border cities as a result of the peso devaluation
Effect of currency devaluations
on INROs daily market indicator price
The consortium successfully bid the equivalent of almost US$46 million in local currency just before the first Brazilian devaluation
on January 12, then paid the reduced price of $42 million days later, only to lose money on the currency's continued weakness as it ultimately finished down about 50%.
In most emerging economies (where devaluations
tend to be more common), sophisticated industrial machinery is often imported as a matter of necessity.
There will, as a result of the weekend devaluations
of the Iberian currencies, be further adjustments to apply from March 13.
The recent 35 percent devaluation
of the Mexican peso plus reputed paper losses of some $8 billion for U.
of the Indian rupee by 22 per cent with the strong indication of further depreciation, a wave shock is seeping through the business circles which feel that it will sharply erode Pakistan's competitive edge in foreign markets rendering its cotton, cotton yarn, textiles, cloth made-ups, garments, leather goods, carpets and rice incompetitive.