Decreases in currency values within a fixed rate system are called devaluations.

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Devaluations refer to deliberate decreases in the value of a currency within a fixed rate system. This can be done by the government or central bank to make exports cheaper and more competitive or to reduce the value of foreign debt. In contrast, when currency values decrease in a floating exchange rate system, it is referred to as a depreciation.

Decreases in Currency Values Within a Fixed Rate System Are