Devaluations: meaning, definitions and examples

This term is used to describe a general decrease in the value of a currency. It can apply to various contexts such as economic policies, market conditions, or historical financial trends.

• The country has faced several devaluations of its currency over the past decade.
• Economic instability often leads to devaluations and a loss of investor confidence.

This term is often used to describe a deliberate action taken by a country's government or central bank to reduce the value of its currency relative to other currencies, typically to boost exports or decrease trade deficits.

• The government announced a currency devaluation to make its products more competitive internationally.
• Following the currency devaluation, the cost of imported goods soared, affecting consumers.

This phrase usually refers to the gradual loss in value of a currency due to market forces and is often observed over a longer period. Common in discussions about foreign exchange markets and investment strategies.

• The currency depreciation has made exports cheaper for foreign buyers.
• Investors are concerned about the ongoing currency depreciation against the dollar.

Often used in economic and finance contexts to describe a deliberate reduction in the value of a country's currency relative to other currencies, typically by a government or central bank.

• The government announced a series of devaluations to boost exports.
• Frequent devaluations have shaken investor confidence.

Commonly used in accounting and finance to describe the reduction in value of an asset over time, due to wear and tear, age, or obsolescence. It can also refer to a general decline in the market value of a currency.

• Companies must account for the depreciation of their equipment and buildings.
• The depreciation of the local currency has led to higher import prices.

A more general term that can apply to any situation where something becomes worth less than it was before. It can be used in various contexts such as economics, investments, and everyday items.

• The loss of value in her investments was significant during the recession.
• After several years, the car experienced a noticeable loss of value.