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- Dictionarydevaluate/diːˈvaljʊeɪt/
verb
- 1. reduce or underestimate the worth or importance of: "the pound was devaluated further during the year"
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Examples of devaluate in a Sentence. Recent Examples on the Web The move is likely to further devaluate Iran’s currency, create a liquidity crunch and be viewed in Tehran as a significant escalation, said Esfandyar Batmanghelidj, founder of Bourse & Bazaar, a think tank focused on Iran’s economy.
verb. remove the value from; deprive of its value. synonyms: devalue. see more. verb. lose in value. synonyms: depreciate, devalue, undervalue. depreciate. lower the value of something. see more. Cite this entry. Style: MLA. "Devaluate." Vocabulary.com Dictionary, Vocabulary.com, https://www.vocabulary.com/dictionary/devaluate.
- What Is Devaluation?
- Devaluation Strategy
- Consequences of Devaluation
- Currency Wars
- The Bottom Line
Devaluation is the deliberate downward adjustment of the value of a country's money relative to another currency or standard. It is a monetary policy tool used by countries with a fixed exchange rateor semi-fixed exchange rate.
By devaluing its currency, a country makes its money cheaper and boosts exports, rendering them more competitive in the global market. Conversely, foreign products become more expensive, so the demand for imports falls. Governments use devaluation to combat a trade imbalanceand have exports exceed imports. As exports increase and imports decrease, ...
While devaluing a currency may be an option, it can have negative consequences. 1. Increasing the price of imports protects domestic industries, but they may become less efficient without the pressure of competition. 2. Higher exports relative to imports can also increase aggregate demand, leading to inflation. 3. Manufacturers may have less incent...
There has been historical conflict between countries such as China and the United States over the valuation of their currencies. A monetary policy that stresses devaluation allows a country to remain competitive in the global trading marketplace. Devaluation also encourages investment, drawing in foreign investors to cheaper assets. The Omnibus Tra...
Devaluation occurs when a country creates a downward adjustment of its currency value to balance trade. Devaluing a currency reduces the cost of a country's exports and makes imports less attractive. As exports increase and imports decrease, there is typically a better balance of payments as the trade deficit shrinks.
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Devaluate definition: to devalue. . See examples of DEVALUATE used in a sentence.
de·val·ue. (dē-văl′yo͞o) also de·val·u·ate (-văl′yo͞o-āt′) v. de·val·ued, de·val·u·ing, de·val·ues also de·valu·at·ed or de·val·u·at·ing or de·val·u·ates. v.tr. 1. To lessen or cancel the value of. 2. To lower the exchange value of (a currency) by lowering its gold equivalency. v.intr.
DEVALUATION definition: 1. the action of reducing the rate at which money can be exchanged for foreign money: 2. the…. Learn more.
DEVALUATE definition: to devalue | Meaning, pronunciation, translations and examples
