Why do countries devalue their currencies? - Tell me why

What is currency devaluation and what does it mean? And why do countries, by their own wish, devalue their currencies? Find out why countries devalue their currency in this short animated video.

How is currency devaluation done?
What is the benefit of currency devaluation?
What is currency devaluation example?
Why would a country devalue its currency?
Is currency devaluation good or bad?
What are the benefits of currency devaluation?

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Background music:
Kevin Macleod

[rkpala]

Even the inception movie didn't confused me like this!😂

[burakdeniz]

Okay, lemme explain it to you guys 🙏🏼

Here, let's take an example of the US and India
Let's assume 1 US dollar is equal to 10 Indian Rupees($1 = Rs10)
Let's say India is facing two problems here:-
1) Imports are high and Exports are low which means there is a "Trade Deficit"

:- Trade Deficit = Exports - Imports

2) Exports are low

Now, these two problems, how can India solve this?
India can devalue its currency, how come? Lemme show you-

Remember $1 = Rs10
Now let's say India devalued its currency and now $1 = Rs20

So you must be thinking how come India solved its problems stated above?

Look if the US people are buying something which is being imported from India and now for $1 they will avail Rs20 worth of material, which earlier was Rs10... So this is good for them, now they can buy more Indian products with that $1 which in turn will require the US to import more from India... So ultimately India is exporting more material, which in turn will boost Exports.

Now, the second problem of Trade Deficit.. here you go...

The people who are living in India have to pay Rs20 for a $1 product, now they will buy fewer US products cause they are expensive, which in turn will result in India will import less from the US.
So, Exports are high, Imports are low.... This is what every country want.
I hope you all understood now 🙏🏼
Thank you for reading this long answer
Take care 🙏🏼

[ghassensmaoui]

This is not the best way to explain it. Introducing so many new words like Rambi Dalluro bla bla only made things harder to understand and the story harder to follow. isn't there a simpler way to explain that concept ?

[sibtainmanzoor]

you have this capacity of taking something really beautiful and turning it into really complex crap.

[shinchanninja]

you should have explained it using the real countries n real currencies. you made it very very confusing by creating fictional planet and currencies.

[hishamassiarchitecture]

Why can't you call the countries and currencies something easier? Like HOI POLLOI, HARA VARADNEH and HUAFGHAG

[TruthTellerr]

I need to do a diploma to understand this Dalluro

[davidcopperfield]

"Lets make Johnville great again."
I see what you did here

[zxzxzy]

I m not sure but what I understood is: Devaluation is like a SALE offer, it may cause loss to the seller but due to this sale offer the seller can attract many customers. Now these customers will buy more things without thinking of any other option and seller profit is huge. In this example the seller is the country which devalues it's currency to export more products and buyers are the other countries like to import.

[headshot]

Why can't we fold paper more than 7 times?

[aastha]

Why are people asking them to calm down about there accent? Their is no prime accent and every accent has same space. This accent is one of many and all are equally represented.

[deepakghadigaonkar]

Thank you so much..I need to watch other videos for getting out from your concepts now

[bigbang]

Could use simple name... Complicated names made complication.

[williamcfox]

Dude, your animation is so freakin good. Don't tell me why- tell me how! How did you learn to animate like that?
Keep up the good work man. Don't stress about your accent. I have a thick American accent when I speak in German, but I just keep going because communication is the most important thing!

[aayushgarg]

Good explanation. The names in the example could have been less complex though. Thanks for the video!

[gourabkundu]

Animation = 10/10
Content = 1/10
Good Animation
Shit Content
Impossible to understand
so FU

[SI_HarshBhargava]

भाई मुझे पहले थोड़ा बहुत समझ आ गया था पर इस वीडियो को देखने के बाद, मुझे लगता है की अब मैं जिंदगी मैं devaluation कभी नहीं समझ पाऊंगा 😂😂

[mukeshch]

Eg can be easy for better reach, Thank you.

[amaarmarco]

This is the best Way to explain it, Ignore idiots who Didn't Get it .

[hembrom]

Got confused, so many new words.
Instead you could have used actual country and currency.