Devaluation is a reduction in the value of a country's currency within a fixed exchange rate system.Devaluation is a monetary policy of a country and its always the last resort when a country is being faced by economic downturn.
Devaluing a currency makes the country's exports to be less expensive and in turn makes their imports more expensive.Thus,if a country largely depends on imported goods then devaluation might increase the cost of living of the populace. This implies that whatever your N50,000 can buy before devaluation,same amount will now be use to buy much lesser quantities.
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