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

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

From Salon • May 4, 2026

Wu-Tang Clan envisioned the unique album and its secrecy as a form of protest against the devaluation of music in the era of streaming.

From The Wall Street Journal • Feb. 6, 2026

Protests and strikes in Iran over inflation and currency devaluation have spread from the capital, Tehran, to several other cities on a third day of unrest.

From BBC • Dec. 30, 2025

“A combination of persistent inflation concerns, U.S. interest-rate cuts, fears surrounding dollar devaluation and substantial central-bank gold purchases continue to underpin prices,” he told MarketWatch by email.

From MarketWatch • Dec. 2, 2025

Growth fell back to 3.1% in 2001 and 2.1% in 2002, largely due to lackluster global growth and the devaluation of the Argentine peso, but recovered to 3.2% in 2003.

From The 2004 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• decline
• decrease
• reduction
• weakening