What does devalue mean?
Devalue is a verb with two closely related meanings: in economics, it means to officially lower the value of a currency relative to others, as when a government devalues the pound to make its exports cheaper abroad. More broadly, it means to diminish the worth, importance, or dignity of something or someone — critics may say a policy devalues public services, and workers may feel devalued when their contributions are ignored. The word carries a negative connotation throughout, implying loss rather than mere change, and it is used in both formal registers, such as financial journalism, and everyday conversation. It derives from the prefix de-, indicating reduction or removal, combined with value, ultimately from Latin valere, meaning 'to be strong or worth'. Its noun form is devaluation, and it should not be confused with deflate, which describes falling prices or confidence more generally. Understanding devalue is useful for following economic news and for articulating questions of respect and recognition in social and workplace contexts.
verbTo reduce or cause something to be regarded as less valuable, important, or worthy of respect; especially (of a currency) to officially lower its value relative to other currencies.
- (of a currency) to officially lower its value against other currencies.
- To reduce the worth, importance, or status of someone or something; to treat as less valuable.
"The government devalued the currency in a bid to boost exports."
"Critics argued the new policy would devalue the work of experienced teachers."
"The central bank was forced to devalue the currency after reserves fell sharply."
When Britain devalued the pound in 1967, Prime Minister Harold Wilson famously told voters it wouldn't affect 'the pound in your pocket' — one of the most quoted lines in economic history.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of devalue
Devalue was formed in English from the prefix de-, expressing reversal or reduction, combined with value, which traces back through Old French to Latin valere, 'to be strong or to be worth'. The word arose in the context of monetary policy, where it described the official lowering of a currency's exchange rate, before extending figuratively to the diminishment of anything's worth or standing. It shares its Latin root with words such as valid, evaluate, and avail, all of which carry the core idea of strength or worth.
Related word forms
How devalue is actually used
Devalue is common in both formal economics and everyday speech. In financial contexts it usually implies an official, deliberate action by a government or central bank. Applied to people, as in 'she felt devalued', it carries emotional weight, suggesting a loss of respect rather than monetary worth. The noun form is devaluation, which is standard in economic writing.
Easily confused with devalue
Devaluate is a rarer variant meaning the same as devalue; devalue is the standard modern form.
Deflate refers to reducing prices or confidence generally, while devalue specifically means lowering official value, most often of a currency.