Devaluation
3 definitions

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A government action to lower the trade value of a nation's currency with respect to other currencies by decreasing the gold content or by revising the ratio to a new standard.

FK Reading Ease
36.9

FK Grade Level
Graduate School
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  • "Devaluation": A substantial decline in an exchange rate, usually effected in one go by government decree.
    FK Reading Ease
    21.4

    FK Grade Level
    College
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  • The act of a government to lower the fixed exchange rate of its currency. The government maintains a fixed exchange rate by buying and selling its currency at that rate. It implements a devaluation by announcing that it will henceforth buy or sell its currency only at a new, lower exchange rate, which means that it will pay more of its currency for a given amount of foreign currency than it did before the devaluation.
    FK Reading Ease
    48.4

    FK Grade Level
    College
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