How do you stop currency devaluation?

To avoid frequent rounds of devaluation by nations and retaliatory action of devaluation by competing nations, various international organisations like the International Monetary Fund (IMF) have been established to help coordinate foreign exchange policies and trade among different countries. You can read about the Balance of Payment Crisis, 1991 – Causes and Measures to Control it in the given link.

To avoid gaining unfair competitive advantage by nations, through devaluation of their currencies, Article IV of the IMF charter gives information for prevention of exchange rates manipulation.

Further readings:

  1. Forex Reserves – Meaning, Importance, Advantages (Notes for UPSC IAS exam)
  2. New Economic Policy of 1991 – Objectives, Liberalisation, Privatisation, Globalisation

Related Links

Foreign Direct Investment (FDI) – UPSC Economy Notes

Foreign Exchange Management Act (FEMA) & Foreign Exchange Regulation Act (FERA)

Previous Years Economics Mains Questions for UPSC General Studies Paper – 3

Economic Reforms – Journey & Road Ahead: RSTV – Big Picture

Economic Reforms of 1991 in India

Topic-Wise GS 3 Questions for UPSC Mains

UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure

Demonetisation Essay – Concepts, Merits, Demerits & Effects Of Demonetisation in India

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