devaluation

/,di:vælju'eiʃn/

Thân thiện

A country's central bank announces a devaluation of its currency.

Definition

1. Noun:
   • The reduction of something's value or worth: "Devaluation" refers to the act or process of making something less valuable or important.
   • An official lowering of a nation's currency: In economics, "devaluation" specifically means a deliberate downward adjustment to the value of a country's currency relative to other currencies or a standard.

Usage and Examples

• General reduction in value:

  • The scandal led to a devaluation of the company's public image.
  • There has been a steady devaluation of traditional skills in the modern economy.

• Economic/Currency context:

  • The government announced a 15% devaluation of the peso to boost exports.
  • Currency devaluation can make imports more expensive for a country.

Advanced Usage

• "Competitive devaluation": A situation where countries seek to gain a trade advantage by sequentially lowering the value of their currencies.

  • Economists warned of the risks of a cycle of competitive devaluation in the region.

• "Devaluation of assets": A reduction in the recorded or market value of assets.

  • The financial crisis caused a massive devaluation of real estate assets.

Variants and Related Words

• Devalue (verb): To reduce the worth or importance of something; to officially lower the exchange value of a currency.

  • The central bank may devalue the currency to correct a trade imbalance.
  • We must not devalue the contributions of our volunteers.

• Devalued (adjective): Having been reduced in value.

  • Investors fled from the devalued currency.

Synonyms

• Depreciation: A decrease in the value of an asset over time, or a fall in the exchange value of a currency.
• Diminution: A reduction in the size, extent, or importance of something.
• Debasement: The action of reducing the quality or value of something.

Antonyms

• Appreciation: An increase in the value of an asset or currency.
• Revaluation: An official increase in the exchange value of a currency.
• Enhancement: An increase or improvement in quality, value, or extent.

Related Phrases and Concepts

• "Risk of devaluation": The potential for a currency or asset to lose value.

  • Foreign investors were concerned about the risk of devaluation.

• "Post-devaluation period": The time following an official currency devaluation.

  • In the post-devaluation period, inflation rates often rise sharply.

Học thuật

Noun

1. the reduction of something's value or worth
2. an official lowering of a nation's currency; a decrease in the value of a country's currency relative to that of foreign countries