# devaluation

/ˌdivæɫjuˈeɪʃən/ (US) · /diːvˌæljuːˈeɪʃən/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/devaluation
Updated: 2026-05-19

## Definition

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.

For teachers: 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.

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