Devaluation: meaning, definitions and examples
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devaluation
[ ˌdiːˌvæljuˈeɪʃən ]
economics
The reduction in the value of a currency in terms of other currencies, which typically leads to higher prices for imports and lower prices for exports.
Synonyms
depreciation, downgrading, reduction in value.
Which Synonym Should You Choose?
Word | Description / Examples |
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devaluation |
Often used in economic contexts to describe a deliberate reduction in the value of a country's currency by its government. It can also refer to a decrease in perceived value of something.
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depreciation |
Typically used in finance and accounting to refer to the gradual reduction in the value of an asset over time due to wear and tear or obsolescence.
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downgrading |
Refers to lowering the status, rank, or quality of something, often used in contexts such as credit ratings, job positions, or assessments. It has a slightly negative connotation.
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reduction in value |
A general term that can be used in various contexts to describe the decline in value of an asset, item, or entity without specifying the method or reason behind it.
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Examples of usage
- The devaluation of the national currency caused inflation to rise.
- After the devaluation, foreign goods became more expensive for the local population.
- The government decided to implement a devaluation to boost exports.
- The devaluation had a significant impact on the economy.
- Many countries resort to devaluation as a strategy to improve trade balance.
Translations
Translations of the word "devaluation" in other languages:
🇵🇹 desvalorização
🇮🇳 मूल्यह्रास
🇩🇪 Abwertung
🇮🇩 devaluasi
🇺🇦 девальвація
🇵🇱 dewaluacja
🇯🇵 価値の低下
🇫🇷 dévaluation
🇪🇸 devaluación
🇹🇷 devalüasyon
🇰🇷 평가절하
🇸🇦 انخفاض القيمة
🇨🇿 devalvace
🇸🇰 devalvácia
🇨🇳 贬值
🇸🇮 devalvacija
🇮🇸 gengislækkun
🇰🇿 девальвация
🇬🇪 დევალვაცია
🇦🇿 devalvasiya
🇲🇽 devaluación
Etymology
The term 'devaluation' originated in the field of economics in the early 20th century. It is derived from the combination of 'de-' meaning 'down' and 'valuation' meaning 'the act of estimating the value or worth of something.' Devaluation is often used as a monetary policy tool by governments to adjust the value of their currency in relation to other currencies. This adjustment can have various economic impacts on a country's trade balance, inflation rate, and overall economic stability.
See also: devalue, evaluable, invaluable, overvaluation, overvalue, overvalued, revaluation, undervaluation, undervalue, undervalued, unvaluable, unvalued, valuable, valuables, valuation, valuator, valued, valueless, values, valuing.
Word Frequency Rank
At position #13,680, this word is part of sophisticated English vocabulary. It's useful for academic or professional contexts where precise language is needed.
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- 13677 underestimated
- 13678 latency
- 13679 liturgical
- 13680 devaluation
- 13681 transact
- 13682 swap
- 13683 staffed
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