devaluation

American  

[dee-val-yoo-ey-shuhn] / diˌvæl yuˈeɪ ʃən /

noun

1. an official lowering of the exchange value of a country's currency relative to gold or other currencies.

2. a reduction of a value, status, etc.

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devaluation British  

/ diːˌvæljuːˈeɪʃən /

noun

1. a decrease in the exchange value of a currency against gold or other currencies, brought about by a government Compare depreciation

2. a reduction in value, status, importance, etc

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devaluation Cultural  

1. A policy undertaken by a nation to reduce the value of its national currency either in relation to gold or in relation to the currencies of other nations.

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Other Word Forms

• minidevaluation noun
• postdevaluation adjective
• predevaluation noun

Etymology

Origin of devaluation

First recorded in 1910–15; devaluate + -ion

Explanation

Devaluation is when the worth of something is underestimated. If nobody appreciates your corny jokes, you might say, "The devaluation of humor in this family is truly tragic!" You can use the word devaluation for anything that isn't fully appreciated or valued, but it's more often used in an economic context. When a government deliberately lowers the value of its currency, as it compares to other countries, that's devaluation. It's one way to lower the cost of exporting goods, and it sometimes helps repair an ailing economy. Devaluation comes from value, "worth or price," and its Latin source, valere, "be strong."

Example Sentences

The devaluation of that nuance is worse than the loss of any award.

From Salon • Mar. 11, 2026

In an address this week, Prime Minister Abdulhamid Dbeibah acknowledged that the devaluation had once again "put the burden on citizens".

From Barron's • Feb. 21, 2026

Protests and strikes in Iran over inflation and currency devaluation have spread from the capital, Tehran, to several other cities on a third day of unrest.

From BBC • Dec. 30, 2025

“A combination of persistent inflation concerns, U.S. interest-rate cuts, fears surrounding dollar devaluation and substantial central-bank gold purchases continue to underpin prices,” he told MarketWatch by email.

From MarketWatch • Dec. 2, 2025

The devaluation of the CFA franc -   its currency - by 50% in January 1994 sparked a one-time   inflationary surge, to 35%; the rate dropped to 6% in 1996.

From The 2008 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• decline
• decrease
• reduction
• weakening