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devaluation Definition

de·valu·a·tion (dē val′yo̵̅o̅ ās̸hən)

noun

    1. a reduction in the amount or fineness of a metal, esp. gold, officially designated as the standard of value of a monetary unit
    2. an official lowering of the exchange value of a currency with reference to other currencies
  1. a lessening in value, importance, etc.

devaluation Usage Examples

Preposition: of

  • peso: A devaluation of the peso in late 1994 threw Mexico into economic turmoil, triggering the worst recession in over half a century.
  • sterling: The planned economy concept took a severe knock with the 1967 devaluation of sterling.
  • currency: Competitive devaluation of foreign currencies was greatest handicap to our export trade in inter-war years.
  • dollar: They were also helped by the devaluation of the dollar that followed the 1985 Plaza agreement among the leading capitalist states.
  • pound: In his attempts to stave off devaluation of the pound, the prime minister was heavily dependent upon America's financial support.
  • property: Loss of value -- devaluation of property, a house sold unnecessarily.

Converse of object

  • force: Then in January speculators forced devaluation on the country anyway.
  • avoid: The IMF made the cuts aimed at avoiding a devaluation a precondition for a substantial loan.
  • reflect: I mean who gives a toss about the transfer between funds to reflect the straight line devaluation of the fixed asset.
  • prevent: If the price of pounds is higher than the market can bear, central bank intervention will eventually fail to prevent a devaluation.

Adjective modifier

  • competitive: Competitive devaluation of foreign currencies was greatest handicap to our export trade in inter-war years.
  • massive: It had a similar massive devaluation against the dollar.
  • sharp: Always a maverick, he had called for a sharp devaluation of the Russian ruble before the August 1998 financial meltdown.
  • further: Credibility demands that the realignment be large enough to make negligible the risk of a further, early devaluation of the pound.
  • recent: Economic and political conditions abroad had eased as a constraint since October, but this survey was completed before the recent Brazilian devaluation.

Noun used with modifier

  • currency: It only takes a slump or a sudden currency devaluation to bring back the pain of the 1980s.
  • dollar: So the dollar devaluation is key to understanding the imbalances that led the UK to recession after the Lawson boom.
  • property: Property devaluation would be entirely uncompensated for most residents.
  • %: Faced with reserves at half their previous level and the enlarged current account deficit, the government opted for 8 % devaluation in January.
  • sterling: Many of the businessmen who were campaigning to join the euro really meant that they wanted a sterling devaluation.
devaluation Quotes

The worker becomes poorer the more wealth he produces and the more his production increases in powerand extent.The worker becomes anevercheaper commodity the more good he creates. The devaluation of the human world increases in direct relation with the increase in value of the world of things. Labour does not only create goods; it also produces itself and the worker as a commodity, and indeed in the same proportion as it produces goods.

—Marx, Karl Heinrich

Browse dictionary entries near devaluation

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