devaluation

noun

de·​val·​u·​a·​tion (ˌ)dē-ˌval-yə-ˈwā-shən 

-yü-ˈā-

1

: an official reduction in the exchange value of a currency by a lowering of its gold equivalency or its value relative to another currency

2

: a lessening especially of status or stature : decline

Examples of devaluation in a Sentence

Recent Examples on the Web

All the while, an agricultural boom set off by Richard Nixon’s 1972 devaluation of the dollar collided with stratospheric interest rates of Federal Reserve Chair Paul Volcker’s tight money hitting unprecedented deficits in Ronald Reagan’s borrow and spend years. —Edward Lotterman, Twin Cities, 23 Nov. 2025

Because of rising debt, currency devaluations, and increases in production costs, food prices have risen by 50 percent in 61 countries and more than 100 percent in 37 countries over the last five years. —Arif Husain, Foreign Affairs, 11 Nov. 2025

Gold has been a prized asset for over 5,000 years and today is seen as a hedge against inflation, currency devaluation, and geopolitical shocks. —Charlie Campbell, Time, 15 Oct. 2025

The bailout offer, to a country with a history of default and devaluation, is aimed at helping Trump’s political ally President Javier Milei notch a win in Oct. 26 midterm elections that will keep his program of drastic economic reforms on track. —Dave Smith, Fortune, 9 Oct. 2025

Word History

First Known Use

1914, in the meaning defined at sense 1

Phrases Containing devaluation

• pre-devaluation

Rhymes for devaluation

• abbreviation
• abomination
• acceleration
• accentuation
• accommodation
• accreditation
• acculturation
• accumulation
• acetylation
• adjudication
• administration
• adulteration

Legal Definition

devaluation

noun

de·​val·​u·​ation (ˌ)dē-ˌval-yə-ˈwā-shən 

1

: an official reduction in the exchange value of a currency by a lowering of its gold equivalency or its value relative to another currency

2

: a lessening of the value of something (as an asset)

portfolio devaluation