The phrase "a deep devaluation" is correct and usable in written English.
It can be used in contexts discussing significant reductions in value, often related to economics or finance.
Example: "The country faced a deep devaluation of its currency, leading to increased inflation and economic instability."
Alternatives: "a severe depreciation" or "a significant drop in value."
But the sudden end of the cepo might provoke an immediate jump of the exchange rate, causing a deep devaluation of the peso and, in turn, inflation — as much as thirty per cent in 2016, up from twenty-three per cent this year, according to some projections.
The peso, whose black-market exchange rate against the dollar was 40percentt lower than the official rate at the time of this writing, is poised for a deep devaluation.
However, falling oil prices and Western sanctions on Russia over Ukraine have triggered a deep economic crisis, a rouble devaluation and double-digit inflation, threatening Putin's reputation for safeguarding Russian prosperity.
And while the burdens imposed by higher interest rates were temporary, those created by deeper devaluations would have been permanent.Thailand embarked on its IMF programme with a current-account deficit of 8% of GDP.
They realized that the pain of trying to survive a deep economic downturn without the elixir of a unilateral currency devaluation might tempt a country to flee — and so they effectively barred the exits.
In the case of Latvia, we can compare their results under "internal devaluation" -- keeping the exchange rate fixed and going through a deep recession to lower wages -- to other countries that had financial crises and recessions associated with external devaluations.
But imports account for only 7% of GDP, and a deep recession is under way, so the impact on prices of devaluation ought to be limited.
Within days of Mr Zedillo's arrival in office, his government was forced into a bungled devaluation that led to the peso's collapse and a deep recession.Thanks in part to emergency loans from abroad, the economy recovered surprisingly quickly.
When he took the job, in April 2002, the economy was floundering, apparently at risk of hyperinflation, after a disorderly devaluation in a dollarised society, the largest debt default in history, and a deep depression.
