Realignment of exchange rates

Updated: Aug 20, 2021

A package of changes in exchange rates, negotiated by agreement between the countries concerned. Under the European Monetary System from 1979 onwards there were a series realignments. These raised the relative par values of the currencies of countries with low inflation and balance-of-payments surpluses, and lowered the relative parities of countries with high inflation and balance-of-payments problems.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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