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Currency crisis
Glossaries
| Term | Main definition |
|---|---|
| Currency crisis | A currency crisis is brought on by a sharp decline in the value of a country's currency. This decline in value, in turn, negatively affects an economy by creating instabilities in exchange rates, meaning one unit of a certain currency no longer buys as much as it used to in another currency. To simplify the matter, we can say that, from a historical perspective, crises have developed when investor expectations cause significant shifts in the value of currencies.
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