Currency Crisis
| A currency crisis is a financial emergency event caused by the fiat currency of a state losing its value, leading to reduced investments in the state’s assets. A currency crisis typically occurs when a government is unable to pay its debts, leading to a loss of confidence in the currency. This can lead to a rapid decline in the value of the currency, as investors sell off the currency in an attempt to avoid losses. A currency crisis can also be caused by a sudden change in government policy, such as a change in interest rates. This can lead to a loss of confidence in the currency and a decline in its value. |
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