<p>If you're talking about undervaluation and overvaluation in term of comparison to the equilibrium real exchange rate, so I think the answer is No because all the currencies could be overvalued or undervalued to their equilibrium. That's why Central Banks or monetary authorities intervene in order to devaluate or reevaluate their currencies, or it's a natural correction (appreciation or depreciation).</p>

CC BY-SA 4.0
2024-07-24T19:54:38.403Z
2024-07-25T07:37:43.540Z
2024-07-25T07:37:43.540Z
Otto
<p>Is there currency neither undervalued nor overvalued?</p>
<p>I assume there is such currency in country with fixed exchange-rate regime.</p>
<p>Am I right?</p>
<p>Thanks.</p>

CC BY-SA 4.0
2024-07-22T09:06:06.683Z
A lot of currencies are traded on free markets with high liquidity. Short of short-run aberrations there seems no reason to assume they are either undervalued or overvalued. If they were and it was known you could beat the market making money trading currency.
Jesper Hybel
<macroeconomics><currency><exchange-rates>
Is there currency neither undervalued nor overvalued?
Mike_bb
# Is there currency neither undervalued nor overvalued?

(Asked by: username_0 on 2024-07-22)

Is there currency neither undervalued nor overvalued?

I assume there is such currency in country with fixed exchange-rate regime.

Am I right?

Thanks.

**Tags:** macroeconomics, currency, exchange-rates

> **Comments:**
> **username_1**: A lot of currencies are traded on free markets with high liquidity. Short of short-run aberrations there seems no reason to assume they are either undervalued or overvalued. If they were and it was known you could beat the market making money trading currency.  

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## 1 answers

### Answer by username_2 on 2024-07-24. Score: 1 | Accepted answer

If you're talking about undervaluation and overvaluation in term of comparison to the equilibrium real exchange rate, so I think the answer is No because all the currencies could be overvalued or undervalued to their equilibrium. That's why Central Banks or monetary authorities intervene in order to devaluate or reevaluate their currencies, or it's a natural correction (appreciation or depreciation).


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