devaluation
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.
“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.”
From de- + valuation.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.