Devaluation (法定贬值 fǎdìng biǎnzhí) is one way of exchange rate change under the fixed exchange rate system. The government or central bank of a country reduces the value of its own currency in the form of regulations, so as to reduce the exchange rate of its own currency to foreign currency. Also see: revaluation.
- 法 (fǎ) as in law (法律 fǎlǜ), judge (法官 fǎguān) or idea (想法 xiǎngfǎ).
- 定 (dìng) as in regulation (规定 guīdìng), certainty (确定 quèdìng) or confirming (肯定 kěndìng).
- 贬 (biǎn) contains (贝 bèi) which means shell or money, and (乏 fá) which means lack of sth.. 贬 (biǎn) as in disparaging (贬低 biǎndī) or negative words (贬义词 biǎnyìcí).
- 值 (zhí) as in value (价值 jiàzhí), worth (值得 zhídé) or ratio (比值 bǐzhí).