: ESSAY WRITING - .

Suppose your country has a fixed exchange rate regime and is currently facing a Balance of payment crisis.One of the policy options for your Central Bank (in response to this Balance of payment crisis) is to conduct devaluation.However, devaluation has its own set of costs.As a policy analyst, you have been asked to provide counter-arguments to this policy.Hence, provide FIVE reasons why the central bank should not conduct devaluation (hint: think of the disadvantages).

You must discuss each disadvantage in a separate paragraph.