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Devaluation Meaning: Definition, Examples, and Translations

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devaluation

[ˌdiːˌvæljuˈeɪʃən ]

Definition

Context #1 | Noun

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?

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Word Description / Examples
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.

  • The government announced a devaluation of the national currency to boost exports.
  • The devaluation of the company's stock worried investors.
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.

  • The depreciation of the new car was quite sharp in the first year.
  • Companies often account for depreciation of equipment in their financial statements.
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.

  • The company faced downgrading of its credit rating due to poor financial performance.
  • After the merger, she experienced a downgrading in her job title.
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.

  • There was a significant reduction in value of the property after the economic downturn.
  • The reduction in value of the collectible items surprised many collectors.

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

To see the translation, please select a language from the options available.

Origin of 'devaluation'

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.