Currency devaluation is a deliberate downward adjustment of a country's currency value relative to other currencies or a fixed standard, typically carried out by the central bank or government. It is often used to boost exports, reduce trade deficits, and increase economic competitiveness, but can lead to imported inflation. Devaluation differs from depreciation, which occurs naturally through market forces rather than deliberate policy action.
Example
“In 2015, China's central bank devalued the yuan by nearly 2% against the US dollar in a surprise move aimed at boosting exports, which triggered significant volatility across global financial markets.”