devaluation

noun

de·​val·​u·​a·​tion (ˌ)dē-ˌval-yə-ˈwā-shən 

-yü-ˈā-

1

: an official reduction in the exchange value of a currency by a lowering of its gold equivalency or its value relative to another currency

2

: a lessening especially of status or stature : decline

Examples of devaluation in a Sentence

Recent Examples on the Web

Dangote says that liquidity is not a problem, and that the refinery is sufficiently dollarized (meaning that his foreign customers pay in U.S. dollars) to withstand the Naira's devaluation. —John Hyatt, Forbes, 17 Feb. 2025

Its central bank, for the most part, must respond to the decisions of the U.S. Federal Reserve to prevent capital flight and currency devaluation. —Isabella M. Weber, Foreign Affairs, 15 Jan. 2025

His commercial peak coincided with an upsurge in celebrity interest and devaluation. —Emma Madden, Vulture, 8 Jan. 2025

Back then, a nearly 3% devaluation shook markets everywhere. —William Pesek, Forbes, 17 Jan. 2025

Word History

First Known Use

1914, in the meaning defined at sense 1

Phrases Containing devaluation

• pre-devaluation

Legal Definition

devaluation

noun

de·​val·​u·​ation (ˌ)dē-ˌval-yə-ˈwā-shən 

1

: an official reduction in the exchange value of a currency by a lowering of its gold equivalency or its value relative to another currency

2

: a lessening of the value of something (as an asset)

portfolio devaluation