Definition of overvalued currency in English English dictionary
(Ekonomi) A currency whose quoted or traded rate is above what the market believes to be its correct level, given its country's balance of payments position and other relevant factors. Traders and speculators would be reluctant to buy a currency they believed to be overvalued as that suggests it should fall. If the domestic currency is considered overvalued, exporters would delay bringing in foreign-currency payments, while importers would benefit from advancing payments