“6.3 divide 4.3 = 1.46511 USD to Ven is then 46%.”
So, if it were 8.6 instead of 6.3, you would get 2.000, which would then mean a 100% devaluation.
Of course if it were then 12.9 instead of of 6.3 , then you would get: 12.9 divide 4.3 = 3.0000 to Ven that is 200%.
I understand what a 100% devaluation means - that means that all value is GONE. But what exactly is a 200% devaluation?
Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged. ‘Devaluation’ means official lowering of the value of a country’s currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. In contrast, depreciation is used to describe a decrease in a currency’s value (relative to other major currency benchmarks) due to market forces, not government or central bank policy actions. Under the second system central banks maintain the rates up or down by buying or selling foreign currency, usually USD. The opposite of devaluation is called revaluation.
Depreciation and devaluation are sometimes incorrectly used interchangeably, but they always refer to values in terms of other currencies. Inflation, on the other hand, refers to the value of the currency in goods and services (related to its purchasing power). Altering the face value of a currency without reducing its exchange rate is a redenomination, not a devaluation or revaluation.
100% devaluation doe not mean worthless... and 200% devaluation simply means it would take four dollars to buy what one did in the past 100% DEPRECATION on the other hand, would mean worthless
see post #34, and devaluation and inflation aren't the same thing either
“But what exactly is a 200% devaluation?”
Easy Answer.....
As the old Saturday Night Live skit said, “Think of inflation as your friend. Wouldn’t you like to wear $1,000 suits and smoke $100 cigars”. I know I would.
http://www.forbes.com/2008/12/09/dollar-devaluation-gold-pf-ii-in_fb_1209soapbox_inl.html
Dollar Devaluation To Fix The Great Recession
Frank Beck, 12.09.08, 01:00 PM EST
A quick dollar devaluation would work wonders for submerged borrowers. Don’t kid yourself: It could happen.
Currency devaluation proved effective in ending the Great Depression. In 1930, Australia was the first to leave the gold standard, immediately devaluing the aussie by more than 40%, and the economy quickly recovered. New Zealand and Japan followed suit in 1931, each with the same result. By 1933, at least nine major economies had enacted a devaluation of their currency by removing it from the gold standard, all of whom emerged from depression.
In 1933, through a series of gold-related acts, culminating in the Gold Reserve Act of 1934, America realized a dollar devaluation of 41% when the price of gold was adjusted from $20.67 per ounce of gold to $35 per ounce. America, like the others before, had its economy bottom and recover as a result. Of the larger economies, only the French and Italians continued to adhere to the gold standard, and their economies remained depressed until finally, in 1936, they allowed their currencies to devalue, and their economies then recovered.