The devaluation of the ruble, which affects it

Originally, the term "devaluation" was strongly tied to gold, the smaller the currency peg was the country to this metal, the greater the devaluation.The devaluation of the ruble - is no exception to this notion.Nowadays the term is applied when the money of the country greatly lose their purchasing power to hard currency, which should include the euro and the US dollar.If you listen to some advice, you can improve your financial situation.

Reduced possibility of purchasing your savings.This will be the devaluation.Devaluation - more capacious concept than inflation.It concerns the relationship of the monetary unit with other currencies.These processes do not belong to the same territory, they determine the market value of different currencies.When the trade balance deterioration in the country, growing inflation, devaluation can occur.In some cases, the devaluation of helping governments to adjust the value of the national currency.This became possible when it was canceled gold cash equivalent.She is not only a result of the macroeconomic indicators, but also regulated by government agencies.So officially reduce the rate of money: the national currency is simply not supported by the inter-bank trading, the course is not tied to the currencies of other countries, and so on.

What is devaluation?Citing this tool in action, it is possible to stimulate imports, the country's currency will fall in price and, as a result, will be in demand in foreign markets.This increases the balance of payments, an increase of exports, new jobs.Improving the balance of payments of the state.Decreases in the price of imports.Produced goods become more competitive.

There are two types of devaluation: covert and overt.Open - it is when the government officially informs about it.Money withdrawn impaired.The conclusion from the interbank circulation is their exchange for new ones.Only at a reduced rate, taken into account the percentage of devaluation.

Hidden - lowers the value of currency in relation to hard currencies, but old money is derived from the circulation.When you open the devaluation is lowering the prices of goods in relation to hard currencies.Hidden, on the contrary, increases their cost

Now, what is the devaluation of the currency, we know she is carrying and negative effects, especially if not controlled.The devaluation of the ruble and its side effects are expressed in this way:

- is a provocateur inflation and increases its growth rate.Produced in the country and reduce the price of the products is necessary to increase the growth rate of production;

- people lose confidence in the currency;

- is a decrease in revenue of imported products.It increases in price.This is a serious blow to the country's businesses and for the entire population.Especially impact on manufacturers who buy foreign technology and equipment for its production;

- uncontrolled population begins to withdraw their savings from banks and buy up the currency.This further increases its cost;

- there is a reduction of wages and pensions, is significantly reduced purchasing power.

Devaluation in Belarus has shown an example of an uncontrollable situation.Although the economy is controlled devaluation is sometimes beneficial.The devaluation of the ruble in Russia took place in 1998, and many lost their savings.Watch the exchange rate, and draw conclusions.