devaluation

devaluation definition - business

devaluation

A reduction in the value of one currency in relation to other currencies. For example, when Mexico devalued the peso, more pesos were required to obtain a given amount of a foreign currency. Devaluation is generally undertaken by a government in order to make its country's products more competitive in world markets. Compare revaluation.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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