Devaluation

Devaluation is the phenomenon where the value of something is reduced, and pushed down.

Typically this happens with an entity such as a company or more usually an asset or perhaps a currency.

Thus if the pound is devalued, then it means that monetary authorities have adjusted downwards the exchange rate compared to another currency such as the dollar.

Related Articles

Gold option
I-Bonds
Loan-to-value
Disbursement
Current yield

More Financial Words and Vocabulary Explained