Currency devaluation refers to a deliberate and official reduction in the value of a country's currency in relation to other currencies. It can occur through various mechanisms, such as adjusting interest rates, intervening in foreign exchange markets, or implementing monetary policies aimed at reducing the supply of domestic currency. Currency devaluation can create financial challenges for business. Financial institutions may be more cautious in extending credit due to increased risks associated with exchange rate fluctuations. Devaluation reduces the value of collateral assets, making it harder for entrepreneurs to secure financing. The systematic literature review (SLR) method was employed in this paper. The authors have covered 6 years of research articles published between 2019 and 2024. This study used thematic analysis for analyzing the data and synthesis the findings. Increased import costs, inflationary pressures, and reduced purchasing power have placed significant strain on Muslim entrepreneurs in Malaysia. By recognizing these challenges, Muslim entrepreneurs can develop effective financial management strategies and explore hedging mechanisms to mitigate currency risk. The study recommended that Muslim entrepreneurs in Malaysia should consider developing export-oriented strategies, including identifying new export markets, conducting market research, and adapting their products and services to meet international demand. By capitalizing on export opportunities, Muslim entrepreneurs can diversify their revenue and reduce their vulnerability to the domestic economic challenges caused by currency devaluation.
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