The reduction in the value of a country's currency of other nations is known as

Devaluation is the reduction in the value of a country's currency compared to the currencies of other nations. This means that one unit of the devalued currency can now purchase fewer units of foreign currency. Devaluation can occur due to various reasons such as a decrease in foreign demand for the country's goods, a decrease in the country's interest rates relative to other countries, or an increase in the supply of the country's currency. The purpose of devaluation is to make the country's exports more competitive in foreign markets by making them relatively cheaper, and to discourage imports by making them relatively more expensive.