CMCGlossary: Currency Crisis ✨ A currency crisis is termed as a financial emergency in which a country's fiat currency loses value, and investors become cautious of retaining/investing in that country's assets. Details:
frequently occurs in conjunction with a crisis. These are marketplaces where
individuals can buy and sell currencies in the same way that they can buy and sell equities on the stock exchangesIn an event of devaluation, many people panic-sell the currency at rates way below what is acceptable, given the current situation, and theCurrency crises can be particularly damaging to small open economies or larger, but less stable countries.by utilizing their currency reserves or foreign reserves to meet the excess demand for a specific currency.
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