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FX revaluation - strict lowest value principle

Hi all,

I'm trying to understand the strict lowest value principle in FX revaluation. I understand that it will make a posting if 'new valuation has a greater devaluation and/or a greater revaluation for credit entries than the previous valuation.'

1. Does this mean only losses are posted?

2. How does this differ from the lowest value principle?

I have looked around the forum but still confused.

Thanks,

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