devaluation meaning

Noun: devaluation  dee`valyoo'eyshun

1. An official lowering of a nation's currency; a decrease in the value of a country's currency relative to that of foreign countries 
2. The reduction of something's value or worth

Derived forms: devaluations

See also: devaluate, devalue

Type of: decrease, diminution, reduction, regulating, regulation, step-down

Encyclopedia: Devaluation

[Economics]
A fall in the value of a currency relative to gold or to other currencies. Governments engage in devaluation when they feel that their currency has become overvalued, for example through high rates of inflation making exports uncompetitive or because of a substantially adverse balance of trade. The intention is that devaluation will make exports cheaper and imports dearer, although the loss of confidence in an economy forced to devalue invariably has an adverse effect. Devaluation is a measure that need only concern governments with a fixed exchange rate for their currency. With a floating exchange rate, devaluation or revaluation takes place continuously and automatically

See:

depreciation, revaluation of currency.

[Finance]
A decrease in the spot price of a currency. Often initiated by a government announcement.

Examples

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1. a devaluation causes the price of one currency to drop in relation to other currencies.
2. two other concepts related to the value of a currency are devaluation or revaluation.
3. two other concepts related to the value of a currency are devaluation or revaluation.
4. the devaluation of teachers in our society, it just
5. the devaluation of teachers in our society, it just ..