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Decrease and Devaluation

noun

  • A change downward.
    • usage: "there was a decrease in his temperature as the fever subsided"; "there was a sharp drop-off in sales"
  • A process of becoming smaller or shorter.
  • The amount by which something decreases.
  • The act of decreasing or reducing something.

verb

  • Decrease in size, extent, or range.
    • usage: "The amount of homework decreased towards the end of the semester"; "The cabin pressure fell dramatically"; "her weight fell to under a hundred pounds"; "his voice fell to a whisper"
  • Make smaller.
    • usage: "He decreased his staff"

noun

  • An official lowering of a nation's currency; a decrease in the value of a country's currency relative to that of foreign countries.
  • The reduction of something's value or worth. .

Devaluation is a deliberate decision by a government or central bank to reduce the value of its own currency in relation to the currencies of other countries. Governments often opt for devaluation when there is a large current account deficit, which may occur when a country is importing far more than it is exporting. When a nation devalues its currency, the goods it imports, and the overseas debts it must repay, become more expensive. But its exports become less expensive for overseas buyers. These competitive prices often stimulate higher sales and help to reduce the deficit.