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
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
Word origin
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.