devalue
dee-VAL-yoo
/ˌdiːˈvæl.juː/
To officially lower the value of a country's currency relative to other currencies or gold.
Refers to a deliberate policy action by monetary authorities in fixed exchange rate regimes.
The story behind the word. Formed from Latin de- (down from) and valere (worth). Explicitly pushing down the benchmark exchange value of legal tender.
Word relationships
- depreciate: Depreciate happens automatically via market trading; devalue requires an explicit official decree.
- revalue: Revalue is an official upward adjustment of a fixed exchange rate.
Commonly confused with
- depreciate: Devalue is intentional central bank policy; depreciate is open market supply/demand decline.
Word family
- devaluation (noun): The official reduction of currency value.
Collocations
- devalue currency
- devalue the exchange rate
- devalue national money
Example sentences
- "The central bank decided to devalue the currency by ten percent to make domestic exports cheaper abroad." Currency management
- "Countries that devalue their currencies risk sparking competitive trading retaliations from partners." International trade
Memory hook
DE-VALUE: pushing the monetary VALUE DOWN deliberately. Decreasing official currency worth.
When not to use
Do not confuse devalue (official decision) with depreciate (market-driven value drop).
Fun facts
- The UK devalued the pound sterling by 14% in 1967, producing Harold Wilson's famous 'pound in your pocket' speech.
Related words
Explore more words
Devaluation, disparage, denigration, Depreciation, deteriorate, degradation
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