devaluation

American  

[dee-val-yoo-ey-shuhn] / diˌvæl yuˈeɪ 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
• postdevaluation
  adjective
• predevaluation
  noun

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

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

The devaluation of that nuance is worse than the loss of any award.

From Salon • Mar. 11, 2026

In an address this week, Prime Minister Abdulhamid Dbeibah acknowledged that the devaluation had once again "put the burden on citizens".

From Barron's • Feb. 21, 2026

Protests erupted in Iran last Sunday over inflation and currency devaluation, after the Iranian rial hit a record low against the US dollar.

From BBC • Jan. 3, 2026

The recovery of international oil prices in 1999, combined with a well-timed tenge devaluation and a bumper grain harvest, pulled the economy out of recession in 2000.

From The 2001 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• decline
• decrease
• reduction
• weakening