# Devaluation

*Macro & Economy — Finicade finance glossary*

A fall in a currency's value against others — deliberate under a fixed regime, or market-driven under a floating one. It makes exports cheaper and imports dearer, a double-edged fix.

**Also known as:** internal-devaluation

**Related terms:** [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Current Account](https://finicade.com/glossary/current-account), [Purchasing Power Parity (PPP)](https://finicade.com/glossary/purchasing-power-parity)

**Taught in:** Macro & Markets — Exchange Rate Regimes

Source: https://finicade.com/glossary/devaluation