Currency revaluation

Currency revaluation is an option for countries with a fixed currency exchange rate. If it seems impossible for a country to defend the fixed exchange rate, the country makes a devaluation and the other country will make a revaluation of the currency exhange rate.

A revaluation involves writing up the value of the currency against another currency. If the fixed exchange rate between Sweden and the United States is 10 SEK/USD, a revaluation of the Swedish currency might mean that the new rate will be 5 SEK/USD. It will make it easier for U.S. exporters to sell goods to Sweden. If a country implements a revaluation, there will be a devaluation of the currency in the other country.