3 ms·

Only if you peg your own currency. If your neighbor devaluates their currency, your will naturally devaluate yours.

• gumby 9y ago
  Yes but the example given was Iceland where the opposite happened: debt (and more importantly interest payments) was denominated in a currency that appreciated against the currency where the revenue to pay the debt was being generated.
• cuchoi 9y ago
  But trade partners != lending partners