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devaluation in Finance (divÃ¦lyueÉªÊÉn) noun. ( Finance : Foreign exchange ) Devaluation is a deliberate decrease in the exchange value of a currency against another currency that is made by a government. It will lead to devaluation of a number of currencies.
The opposite of devaluation, a change in the fixed rate making the foreign currency less expensive, is called a revaluation. Related but distinct concepts include inflation, which is a market-determined decline in the value of the currency in terms of goods and services (related to its purchasing power).