Revaluation definition

Revaluation is the opposite of devaluation, in which a country's currency experiences a downward value adjustment.

In a free-floating exchange system, a revaluation of a currency can be caused by supply and demand issues, such as interest rate changes. It can also be caused by changes in the perceived economic stability of a country following an event such as a newly elected leader.

In a fixed exchange rate system, a revaluation can only be triggered by the government, usually in response to market pressures.