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devaluate

verb

/diˈvæl yuˌeɪt/

IPA:

Dictionary definition of devaluate

To reduce or lower the value or worth of something, typically a currency or an asset.
"Inflation can devaluate the purchasing power of a nation's currency."

Detailed meaning of devaluate

It involves a deliberate or involuntary downward adjustment in the monetary or market worth of an item or entity. When something is devaluated, its perceived or exchange value diminishes, often resulting in a decline in purchasing power or overall desirability. This can occur due to various factors such as economic instability, inflation, market fluctuations, or deliberate policies implemented by governing bodies. Devaluating a currency, for example, makes it weaker relative to other currencies, leading to a decrease in its purchasing power in international markets. In general, devaluating an asset or currency can have significant impacts on trade, investment, and economic stability, influencing factors such as prices, exports, imports, and the overall economic outlook.

Example sentences containing devaluate

1. The sudden economic crisis caused the currency to devaluate rapidly.
2. The company's poor performance in the market caused its stocks to devaluate significantly.
3. The decision to devaluate the product led to a decrease in demand.
4. The government's policy to devaluate the national currency aimed to boost exports.
5. The housing market crash caused property values to devaluate overnight.
6. The company had to devaluate its assets to avoid bankruptcy.

History and etymology of devaluate

The verb 'devaluate' has its roots in Latin and is closely related to the word 'value.' It can be traced back to the Latin word 'devalere,' where 'de' indicates a reversal or reduction, and 'valere' means 'to be worth' or 'to have value.' In its original Latin form, 'devalere' referred to the act of diminishing or decreasing the worth or value of something. As languages evolved, this concept was adopted into English as 'devaluate.' Therefore, the etymology of 'devaluate' underscores its historical association with the reduction or lowering of the value or worth of something, particularly in the context of currencies or assets.

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Further usage examples of devaluate

1. The decision to devaluate labor wages sparked protests and strikes.
2. Economic uncertainty caused investors to devaluate the stock market.
3. The government's decision to devaluate taxes relieved the burden on small businesses.
4. The economic crisis caused the currency to devaluate rapidly.
5. Investors panicked as the stock market started to devaluate.
6. The company's decision to downsize led its assets to devaluate.
7. The government's mismanagement caused the national currency to devaluate.
8. International trade tensions can devaluate a country's exports.
9. The sudden increase in supply caused the price of the product to devaluate.
10. Economic instability can devaluate real estate prices.
11. The news of the scandal caused the company's reputation to devaluate overnight.
12. Changes in market demand can devaluate certain commodities.
13. The decision to cut interest rates may devaluate the currency.
14. Inflation can devaluate the purchasing power of consumers.
15. The country's political instability has caused its bonds to devaluate.
16. A strong competitor can devaluate a company's market share.
17. The product's poor quality caused its brand value to devaluate.
18. Economic sanctions can devaluate a nation's exports and imports.
19. Changes in consumer preferences can devaluate certain brands.