Revaluation is the process of reassessing the value of a country's currency in relation to other currencies. This adjustment can occur due to changes in economic conditions, such as inflation or shifts in trade balances. A revaluation typically results in a stronger currency, making imports cheaper and exports more expensive. Governments or central banks, like the Federal Reserve or the European Central Bank, may initiate revaluation to stabilize the economy or control inflation. It is often part of a broader monetary policy strategy aimed at achieving economic goals, such as promoting growth or maintaining competitive trade balances.