Revaluation
A deliberate upward adjustment of a currency's fixed exchange rate, making it stronger against other currencies.
What is Revaluation?
Revaluation is the deliberate upward adjustment of a country's official exchange rate under a fixed or managed exchange rate regime — the central bank increases the domestic currency's value relative to a foreign currency or gold. Revaluation makes a country's exports more expensive and imports cheaper, which can help address an overheating economy, reduce trade surpluses, and lower import-driven inflation. It is the opposite of devaluation. Revaluation is rare and typically occurs when a country faces external pressure to allow its currency to appreciate — most notably, the United States has historically pressured China to revalue the renminbi, citing China's large trade surplus.
Example
China revalued the renminbi (CNY) by approximately 2.1% against the US dollar in July 2005, shifting from a fixed peg of 8.28 to 8.11 per dollar, and simultaneously moving to a managed float against a basket of currencies. This followed years of US pressure arguing the renminbi was significantly undervalued and gave China an unfair trade advantage.