system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why is it beneficial for some countries to keep their currency devalued?

Of what I've heard, it seems like some countries keep their currency devalued on purpose because it helps them in trade in some way. Notably for America, this is China, but India has done this previously too. I also know it may have to do something with a country having surplus exports, but can't be sure.
gpt
When you import goods from another country, usually you have to pay them in whatever currency they use. Let’s say Germany wants to import American steel. The German company will need to pay The US steel company in US dollars.

When the US dollar is devalued, each German euro is worth more US dollars. The company can now afford to buy more steel. Averaged over the entire economy, more US steel will be bought. The quantity of sales goes up, while the price of steel in Euros goes down.

The thing is, the US steel companies still charge the same price in US dollars. So more purchases means more profits in US dollars for them. The quantity of sales rises while price in USD is the same. So USA benefits from more exports.

Over the entire economy, the impact of a devalued exchange rate can boost exports by a significant amount. The GDP of the country rises. That’s why export-focused economies would benefit if the value of their currency decreases.