Word
devaluation
Phoneticsde·val·u·a·tion, stress on the fourth syllable
US/ˌdivæɫjuˈeɪʃən/
UK/diːvˌæljuːˈeɪʃən/
Definition
n. the act of making a currency worth less compared to other currencies. This usually happens when a government or central bank officially lowers the value of its money.
n. the official reduction in the value of a currency relative to other currencies or to gold. Often used in the context of monetary policy to make a country's exports more competitive.
Examples
“The central bank announced a sharp devaluation of the local currency.”
“Economists warned that the sudden devaluation would lead to higher prices for imported goods and services.”
“The government's decision to devalue the currency was intended to stimulate domestic industry by making exports cheaper and more attractive to international buyers.”
Examples
simple
“The central bank announced a sharp devaluation of the local currency.”
contextual
“Economists warned that the sudden devaluation would lead to higher prices for imported goods and services.”
complex
“The government's decision to devalue the currency was intended to stimulate domestic industry by making exports cheaper and more attractive to international buyers.”
Real-World Examples
“In a country where currency devaluation has eroded savings, a single $500 artwork sale can provide significant income towards studio rent or much-needed pigments.” “The move follows a 13.3% devaluation in April 2025, which had set the exchange rate at 5.5677 dinars to the U.S. dollar.” “The central bank would target a monthly devaluation of 2%.” “China's Central Bank has again cut the guiding rate for the national currency, the yuan, a day after Tuesday's record 1.9% devaluation.” Etymology
From de- + valuation.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Domain
- Exam level
- CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
- Frequency
- Occasional
- Level
- C1 · Advanced
- Updated
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QR code
englishreference.com/q/devaluation