How can a Government Raise there own Currency Value?
Is there away for a.government tp raise the own Value of there dollar?
- Just LifeLv 48 years agoFavorite Answer
By selling more dollar abroad and in the domestic market, will increase transactions in dollars internationally and make the government appreciate it (reduce nominal exchange rate i.e. dollar per unit of foreign currency)
China does it all the time, they devalue their currency by avoiding to bring foreign currency in the economy and selling Yuan at a cheaper rate increasing demand for exports which are then cheaper abroad and domestically.Source(s): mind
- AdlerLv 48 years ago
If governments were actually honest it would be difficult to raise their own currency value. Let me explain. If our govt in the US ( for example ) actually was on the gold standard ( as it is supposed to be) our currency value would be directly based on the value of the gold itself. The gold would determine the value, not printing more " Monopoly" money!
Making a great product (s) and exporting them, and not importing anything, this would increase our economic stability very much.