• Refers to the action taken by a country via its central bank or monetary board which reduces the value of its currency vis a vis other currencies. Often, the result is more abrupt than would occur within a floating rate framework.
• A decrease in the spot price of the currency.
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| ||Beggar thy neighbor devaluation: A Devaluation that is designed to cheapen a nation's currency and thereby increase its exports at other countries' expense and reduce imports. Such devaluations often lead to trade wars.|
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| ||Beggar thy neighbor devaluation|