What are the causes of devaluation?

Devaluation can occur due to a variety of factors, including economic imbalances, such as a trade deficit where imports exceed exports, leading to increased supply of the currency. Additionally, high inflation rates can diminish a currency's purchasing power, prompting a government to lower its value to boost competitiveness. Political instability or changes in government policies can also contribute to devaluation by undermining investor confidence. Lastly, external factors, such as shifts in global markets or economic sanctions, can force a country to devalue its currency.