Realignment
As realignment is called the realignment of the exchange rate of a currency in exchange rate regimes with fixed exchange rates or bandwidth system.
Realignment or the release of the exchange rate is essential if the currency is under constant devaluation pressure. Otherwise, the central bank would have to buy its own currency in order to secure the exchange rate target in order to support it. To do this, it would then gradually use up its currency reserves , which of course is not unlimited because of the limited size of the reserves.
Realignment may also make sense if a country has constant export surpluses. Since the central bank would be obliged in this case with fixed exchange rates or a bandwidth system to constantly buy up the oversupply of foreign currency created by the export surpluses in order to meet the exchange rate target, there is a risk of imported inflation .