When the value of currency decreases it is called devaluation.
Devaluation refers to the intentional reduction in the price of a nation's currency in relation to a different monetary unit, currency band, or monetary standard. Countries with fixed or flexible exchange rates employ this monetary policy tool. It is the opposite of revaluation, which is often confused with depreciation and refers to the revision of a currency's exchange rate.
In macroeconomics and modern financial theory, a devaluation is a trustworthy decline in the value of a nation's currency within a predetermined exchange-charge mechanism, in which a monetary authority formally sets a lower exchange rate for the national currency relative to a foreign reference currency or foreign currency basket.
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