Devaluation

usgb/ˌdiːˌvæljuˈeɪʃn/
noun

When a government reduces the value of its currency purposely.

The government's economic strategy included a planned devaluation of its currency.
Visual representation of "devaluation" - When a government reduces the value of its currency purposely.

Often appears as...

  • currency devaluation
  • planned devaluation

Usage tips

Formal

Academic

Definition 1 of 3
Visual representation of "devaluation"
LampPro Tip 1/3

Economic Strategy

Devaluation is often deliberate to boost exports by making them cheaper abroad.

Illustration for Economic Strategy
Post devaluation, our exports have become competitive in the international market.
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Government Action

The term suggests official action, not natural market movements.

Illustration for Government Action
The devaluation was announced by the treasury department.
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Inflation Link

Devaluation can lead to inflation, as imports become more expensive.

Illustration for Inflation Link
After the devaluation, the price of imported goods rose sharply.
Visual representation of the word "Devaluation"

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