Devaluation of currency will be more beneficial if the prices of domestic goods remain constant. Devaluation is a monetary policy tool used by the countries that have a fixed exchange rate or semi-fixed exchange rate. The one reason a country may devaluate its currency is to combat trade imbalances. Devaluation causes a country's exports to become less expensive, making them more competitive in the global market. After devaluation, the new lower value of the domestic currency will make it less expensive for the foreign consumers to obtain local currency with which to buy locally produced export goods. So, more exports will be sold, helping domestic businesses.