- A decrease in the spot price of the currency. The New York Times Financial Glossary
* * *devalue de‧val‧ue [diːˈvæljuː] verb1. [transitive] MARKETING to cause something to lose its value:
• Heavy price discounting will devalue our famous brands.2. [transitive] FINANCE when a country devalues its currency against other currencies, it decreases its value for economic reasons, for example to make its exports cheaper:
• Hungary said it will devalue its currency by an average of 15% against major Western currencies.3. [intransitive] ECONOMICS when a country's currency devalues against others, it loses its value:
• With more money coming into circulation, the ruble may devalue further.— devaluation noun [countable, uncountable] :
• the pound's devaluation after sterling withdrew from the European Exchange Rate Mechanism
* * *Formal downward adjustment of a currency's official par value or central exchange rate. Opposite of revaluation.
* * *devaluation UK US /ˌdiːvæljuˈeɪʃən/ noun [C or U] FINANCE, ECONOMICS► a reduction in the value of a currency compared to others: »
The devaluation of the dollar had a strong effect on the financial markets.»
Currency devaluation has inflationary consequences.
Financial and business terms. 2012.