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Devaluing your currency makes foreign products more expensive relative to yours and makes your products cheaper relative to foreign ones. That means that it is
by rbehrends 14y ago
Devaluing your currency makes foreign products more expensive relative to yours and makes your products cheaper relative to foreign ones. That means that it is less attractive to export goods to your country and more attractive to import from your country.
That does not mean that devaluation is a sinecure; for example, if you heavily depend on imported goods, it will drive prices for those goods up. But it can help correct trade and current account imbalances.
Also, devaluation is, more often than not, something that happens simply due to trading and market pressure and not because of government action. If a country keeps having a trade surplus, then its currency will automatically appreciate, unless there are countervailing forces.