Using an undervalued currency to gain export competitiveness is a logical strategy for any developing nation. An undervalued currency is simply one that is cheaper than it should be in exchange rate terms. The case against undervaluationEconomists have several arguments against currency undervaluation. Undervalued currency — who gains, who losesThe economic disequilibrium that an undervalued currency is tends to realign costs and benefits in disproportionate ways. An exchange rate policy deemed appropriate at a given point in time need not be so at a later stage of a nation’s growth.

Source: The Edge Markets January 16, 2026 03:36 UTC