devaluación de la moneda
currency devaluation
The term 'devaluación de la moneda' in Spanish translates to 'currency devaluation' in English. It is a financial concept where a currency experiences a decrease in value compared to other currencies. Currency devaluation can be a result of government policies in an effort to adjust trade imbalances, or could occur naturally due to market dynamics in an economy experiencing financial instability. It generally means the domestic currency can buy less of foreign currencies, leading to increased costs of imported goods, among other effects.
Example sentences using: devaluación de la moneda
La devaluación de la moneda es un potente instrumento económico.
Currency devaluation is a powerful economic instrument.
This sentence explains that devaluing a currency can be an effective tool in economic management. When a country devalues its currency, it decreases the value of its currency in relation to other currencies, increasing exports and stimulating economic activity.
La devaluación de la moneda causó una inflación masiva.
Currency devaluation caused massive inflation.
This sentence implies a negative effect of currency devaluation. When a country devalues its currency, the prices of imported goods can rise because they become more expensive to buy in the devalued currency, leading to inflation.
Jorge está estudiando las consecuencias de la devaluación de la moneda en su país.
Jorge is studying the consequences of currency devaluation in his country.
In this sentence, Jorge is analysing the implications of monetary devaluation on his country's economy. These effects can be both positive, such as making exports more competitive, and negative, such as causing inflation or increasing the cost of foreign debt.