Currency revaluation is just opposite of currency devaluation. Currency devaluation is the upward shift to the value of a certain currency. Just like the decline in the currency value, this significant rise also impacts the economy of a country is a crucial way. This process of revaluation can be done by the central bank of the country. To maintain profitability and competitiveness, the country could revalue the currency due to changing interest rates. International Monetary Fund has a crucial role in evaluating a currency.
The revaluation and devaluation of the currency occur in comparison to dollar value mostly. If a country trades a lesser number of its currency units to 1 US dollar, it means the currency of that currency has appreciated against the US dollar. The official exchange rates gain a significant rise in relation to a foreign currency. Countries also revaluate their currency for speculative purposes so that they could keep their exports profitable in the international market.
The overall impact of currency revaluation is positive for the economy. If a currency revaluates against the US dollar, it means the country can prosper through trade benefits. It also raises the rate of foreign investment due to the higher value of the currency in the world. Economic growth can be fueled by currency revaluation.