Recent Examples of devaluation from the Web
Passing stats have exploded in the NFL, leading to a devaluation of the NFL’s most important position in fantasy football.
Fewer than 2 percent of global transactions used yuan in June, down from a record 2.79 percent in August 2015, when the government roiled markets with a surprise currency devaluation.
A more stable dollar would also ameliorate the stress on China’s exchange-rate peg, reducing the threat of a major devaluation this year.
Its major selling point, its promise of a unique contribution to San Diego’s sporting character, has suffered a major devaluation.
If so many people can come forward and still be disbelieved, the devaluation of women’s voices is clear.
Bad family business ideas, and especially the devaluations, ended the harmony.
The recession sparked a Russian ruble devaluation, and many Russians were hit hard by the currency shakeup.
Like Aaron Brill, the owner of southern Colorado’s Silverton Mountain, a longtime, vocal critic of the Epic Pass’ devaluation of day lift ticket prices.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'devaluation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of devaluation
Financial Definition of DEVALUATION
What It Is
Devaluation refers to a decrease in a currency's value with respect to other currencies.
How It Works
A central bank can make the conscious effort to make its currency less valuable. If Country XYZ's currency is set at a fixed exchange rate of 2:1 to the U.S. dollar and, due to a weak economy, XYZ cannot afford to pay the interest rate on its debt outstanding, XYZ may devalue their currency. This means the central bank of XYZ will declare their fixed exchange rate to be 10:1 to the U.S. dollar. This makes their debt outstanding is now worth five times less. It's a very tricky maneuver with grave economic consequences.
Why It Matters
Whether deliberate or as a result of market climate, currency devaluation reduces the price of a country's domestic output. This has the potential to benefit the economy by helping to increase its export volume. Conversely, import volumes become stifled as the price of foreign-produced goods and services increases dramatically.
The opposite of devaluation is known as revaluation.
For a more thorough explanation of currency devaluation, how China manipulates its currency worth and the economic impact following Argentina's devaluation, please read this educational article: How Money Manipulation on the Other Side of the World Could Affect American Portfolios
legal Definition of devaluation
- portfolio devaluation
Seen and Heard
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