Definition, Meaning & Synonyms

devaluate

verb

/ˌdiːˈvæl.ju.eɪt/

Definition

To reduce or underestimate the worth or importance of something; to lower the value of a currency.

Examples

The government decided to devaluate the currency to boost exports.
Over time, inflation can lead to the devaluation of money.
Many investors feared that the central bank would devaluate their national currency.

Meaning

Devaluation often refers to a reduction in the value of a currency in relation to foreign currencies, which can impact trade, inflation, and economic stability.