devaluation

American  

[dee-val-yoo-ey-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.

---

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

---

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.

---

Other Word Forms

• minidevaluation
  noun
• predevaluation
  noun
• postdevaluation
  adjective

Etymology

Origin of devaluation

First recorded in 1910–15; devaluate + -ion

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

That practice must end, because it is a "complete devaluation of the resource that is so fortunately endowed in places like Nigeria and other countries," he told BBC Focus on Africa.

From BBC ● Jul. 20, 2026

But that sweeping generality about serenity’s devaluation could easily apply to any culture, Hayao Miyazaki might say.

From Salon ● Jul. 15, 2026

While you don’t have any control over point devaluation, you can protect yourself by spending your points and not hoarding them.

From MarketWatch ● Jul. 14, 2026

Iran’s crypto ecosystem has grown rapidly in recent years amid sanctions, currency devaluation and external military threat, reaching about $7.8 billion last year, according to Chainalysis data.

From The Wall Street Journal ● Apr. 9, 2026

This reform began with a 50% devaluation of Senegal's currency, the CFA franc, which was linked at a fixed rate to the French franc.

From The 2008 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• decline
• decrease
• reduction
• weakening