undervalued currency

English - Turkish

Definition of undervalued currency in English Turkish dictionary

(Ekonomi) Başka ülkenin para birimine göre düşük değerli para

English - English

Definition of undervalued currency in English English dictionary

(Ekonomi) A currency which is quoted or traded below what is perceived as its true market value, given its country's balance of payments position, economy, interest rates and so on. An undervalued currency will be in demand as traders and speculators believe it will rise and therefore will buy it to make a profit; enough of such buying and expectations become self-fulfilling as demand pushes the currency higher. Exporters' and importers' views on currencies would influence how they manage cashflows. An exporter would bring foreign-exchange receipts into the country if the domestic currency were considered undervalued and therefore likely to rise; an importer would delay payments in the hope that the undervalued domestic currency would rise, thereby reducing the cost of imports

Hyphenation

un·der·val·ued cur·ren·cy

Turkish pronunciation

ʌndırvälyud kırınsi

Pronunciation

/ˈəndərˌvalyo͞od ˈkərənsē/ /ˈʌndɜrˌvæljuːd ˈkɜrənsiː/