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Is there currency neither undervalued nor overvalued?

Is there currency neither undervalued nor overvalued?

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Mike_bb · External communityPost link
External question — Economics Stack Exchange Author: Mike_bb Original post: https://economics.stackexchange.com/questions/58845 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Is there currency neither undervalued nor overvalued? I assume there is such currency in country with fixed exchange-rate regime. Am I right? Thanks.
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Otto · External communityPost link
External answer — Economics Stack Exchange Author: Otto Original post: https://economics.stackexchange.com/a/58863 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. 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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Quoted from Forex.com.bd-Editorial External answer — Economics Stack Exchange Author: Otto Source score (net votes, not local likes): 1 Original post: https://economics.stackexchange.com/a/58863 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. 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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