By Devaluation We Mean?

Devaluation is the deliberate downward adjustment of the value of a country's money relative to another currency, group of currencies, or currency standard. ... It is often confused with depreciation and is the opposite of revaluation, which refers to the readjustment of a currency's exchange rate.

What is devaluation example?

For example, suppose a government has set 10 units of its currency equal to one dollar. To devalue, it might announce that from now on 20 of its currency units will be equal to one dollar. This would make its currency half as expensive to Americans, and the U.S. dollar twice as expensive in the devaluing country.

What is meant by devaluation of rupee?

Devaluation means officially lowering the value of currency in terms of foreign exchange. The devaluation of currency is done by government. The rupee is devalued first in 1966 by 57% from Rs. 4.76 to 7.50 against US dollar.