Concept in Definition ABC

The word evaluation means analysis and assessment Of something. Consequently, if we incorporate the prefix re we are expressing that something is being evaluated again.

If a teacher is correcting or evaluating a student's written test and wants to make sure that the note that he has put is correct, he will have to make a revaluation of it. In this way, in the revaluation there is always the repetition of the initial action. In practice, revaluation is a very common process in the commissioning of an industrial machine, a software system or a procedure of safety. In short, of everything that should offer the maximum guarantees of efficacy and safety.

On the other hand, the concept of revaluation incorporates a more complex economic sense and can affect the macroeconomy, at the value of a coin or at the new price of a piece of land.

Revaluation and devaluation of a currency

Devaluation and revaluation are two useful concepts that are very common in the financial and economic sphere.

A currency is devalued when you have to give much more local currency for an international currency. This means that the local currency loses competitiveness, that is, it is worth less in relation to a foreign currency. Devaluation is also known as a drop in the value of a certain currency.

On the contrary, a revaluation of a currency occurs when you have to give less local currency for an international currency. Revaluation means that the country Linked to the local currency, it is losing competitiveness (for example, for every dollar sold in international markets, less local currency is being obtained). In any case, the revaluation supposes the modification of the exchange rate of a currency by means of an increase in its value.

One of the difficulties associated with the devaluation or revaluation of a currency is to predict this situation. To do this, there are some economic indications and data that may be useful: when a country has a rate With low economic growth, it is very likely that the currency will devalue and if economic expectations are favorable, the revaluation phenomenon will foreseeably occur.

The idea of ​​revaluation in the economic sense is equally applicable to the value of land (for example, when due to a change in the legislation a piece of land agricultural becomes urban). Likewise, there is also the revaluation of assets or fixed assets. In all these cases it is a revaluation of something, that is, an increase in price.

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