TRADING GLOSSARY
Devaluation
Devaluation is an official reduction in a currency's value under a fixed or managed exchange-rate arrangement. It differs from depreciation, which is a market-driven fall, and can make imports more expensive in domestic-currency terms.
EXAMPLE
In a hypothetical devaluation, the official rate changes from two to three domestic units per US dollar. A $100 import then costs 300 rather than 200 domestic units.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure