What does devaluation mean?
Definitions for devaluation
diˌvæl yuˈeɪ ʃənde·val·u·a·tion
This dictionary definitions page includes all the possible meanings, example usage and translations of the word devaluation.
Princeton's WordNet
devaluationnoun
an official lowering of a nation's currency; a decrease in the value of a country's currency relative to that of foreign countries
devaluationnoun
the reduction of something's value or worth
Wiktionary
devaluationnoun
The removal or lessening of something's value.
devaluationnoun
The intentional or deliberate lowering of a currency's value compared to another country's currency or a standard value -- the price of gold for example.
devaluationnoun
Depreciation.
Wikipedia
Devaluation
In macroeconomics and modern monetary policy, a devaluation is an official lowering of the value of a country's currency within a fixed exchange-rate system, in which a monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket. The opposite of devaluation, a change in the exchange rate making the domestic currency more expensive, is called a revaluation. A monetary authority (e.g., a central bank) maintains a fixed value of its currency by being ready to buy or sell foreign currency with the domestic currency at a stated rate; a devaluation is an indication that the monetary authority will buy and sell foreign currency at a lower rate. However, under a floating exchange rate system (in which exchange rates are determined by market forces acting on the foreign exchange market, and not by government or central bank policy actions), a decrease in a currency's value relative to other major currency benchmarks is instead called depreciation; likewise, an increase in the currency's value is called appreciation. Related but distinct concepts include inflation, which is a market-determined decline in the value of the currency in terms of goods and services (related to its purchasing power). Altering the face value of a currency without reducing its exchange rate is a redenomination, not a devaluation or revaluation.
ChatGPT
devaluation
Devaluation is an economic strategy where a government deliberately reduces the value of its country's currency relative to other foreign currencies. This is often done to boost exports, as it makes the country's products cheaper to buy in the international market. However, it can lead to inflation and loss of trust in the country's economy, if not managed well. It typically involves adjusting the country's exchange rate when it follows a fixed or semi-fixed exchange rate system.
Wikidata
Devaluation
Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged. ‘Devaluation’ means official lowering of the value of a country's currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. In contrast, depreciation is used to describe a decrease in a currency's value due to market forces, not government or central bank policy actions. Under the second system central banks maintain the rates up or down by buying or selling foreign currency, usually but not always USD. The opposite of devaluation is called revaluation. Depreciation and devaluation are sometimes incorrectly used interchangeably, but they always refer to values in terms of other currencies. Inflation, on the other hand, refers to the value of the currency in goods and services. Altering the face value of a currency without reducing its exchange rate is a redenomination, not a devaluation or revaluation.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of devaluation in Chaldean Numerology is: 7
Pythagorean Numerology
The numerical value of devaluation in Pythagorean Numerology is: 7
Examples of devaluation in a Sentence
A sharp drop in the renminbi would likely spark a renewed sell-off of global risk assets and trigger a flight of portfolio capital from emerging markets, moreover, a sharp depreciation of the renminbi could lead to a round of competitive devaluation in other emerging markets, particularly in those with close trade linkages to China.
As soon as there is any devaluation, the pass through to prices is automatic, there is no delay.
There’s no doubt that China has some real issues in front of it and the devaluation of the yuan as well as the huge selloff in their markets spell trouble ahead, so I think it’s justified.
The parallels with Argentina are there. A broken banking system, an unsustainable debt, and the need to restore and enhance international competitiveness, but there are reasons to think that reintroduction of the drachma and devaluation would do less for Greece than devaluation did for Argentina. Greece is less open, it exports less.
Even if the protesters leave the streets the real problem facing them is what they are going to do with the devaluation of the pound, a very large majority of the Lebanese income is in the Lebanese pound, their savings are in the Lebanese pound and their pension is in Lebanese, and it is certain it has already started to devalue.
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Translations for devaluation
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"devaluation." Definitions.net. STANDS4 LLC, 2024. Web. 27 Apr. 2024. <https://www.definitions.net/definition/devaluation>.
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