Revaluation

Revaluation is the process of increasing the value of an asset, good, or currency relative to a chosen standard or baseline. It is often carried out to reflect current market conditions, inflation, or changes in demand and supply. In the context of currency, revaluation occurs when a country officially raises the value of its currency in relation to foreign currencies under a fixed or managed exchange rate system. This contrasts with devaluation, which involves lowering the value of a currency or asset. Example: If the government raises the exchange rate of its currency from ₹85 to ₹80 per USD, it means the currency has been revalued, as it now has greater purchasing power in foreign markets.