devaluation

American  

[dee-val-yoo-ay-shuhn] / diˌvæl juˈeɪ ʃən /

noun

1. an official lowering of the exchange value of a country's currency relative to gold or other currencies.

2. a reduction of a value, status, etc.

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devaluation British  

/ diːˌvæljuːˈeɪʃən /

noun

1. a decrease in the exchange value of a currency against gold or other currencies, brought about by a government Compare depreciation

2. a reduction in value, status, importance, etc

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devaluation Cultural  

1. A policy undertaken by a nation to reduce the value of its national currency either in relation to gold or in relation to the currencies of other nations.

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Other Word Forms

• minidevaluation
  noun
• predevaluation
  noun
• postdevaluation
  adjective

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Etymology

Origin of devaluation

First recorded in 1910–15; devaluate + -ion

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Explanation

Devaluation is when the worth of something is underestimated. If nobody appreciates your corny jokes, you might say, "The devaluation of humor in this family is truly tragic!" You can use the word devaluation for anything that isn't fully appreciated or valued, but it's more often used in an economic context. When a government deliberately lowers the value of its currency, as it compares to other countries, that's devaluation. It's one way to lower the cost of exporting goods, and it sometimes helps repair an ailing economy. Devaluation comes from value, "worth or price," and its Latin source, valere, "be strong."

Example Sentences

See Examples For:

devaluation

“I wouldn’t use the word devaluation simply because I don’t know what is going to happen,” said Treasury Secretary John B. Connally, adding that Nixon’s move “permits us to negotiate new rates of exchange.”

From The Wall Street Journal ● Aug. 9, 2026

Fernando Romero, president of the College of Economists of Tarija, a city in southern Bolivia, told AFP the devaluation would "likely cause the prices of imported goods to increase."

From Barron's ● Jun. 29, 2026

Millions with so-called straight jobs shudder at their steady devaluation in the face of artificial intelligence.

From Salon ● May 4, 2026

Just over a week ago, the dollar index fell to a four-year low on fears of a more prolonged devaluation in the U.S. currency.

From MarketWatch ● Feb. 9, 2026

Then the day after devaluation, we switch it all back into dollars again.

From The Common Man by George Luther Schelling

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Related Words

• decline
• decrease
• reduction
• weakening

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