(1) “Devaluation” means official lowering of the value of a country’s currency within a fixed exchange rate system,by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. ... The opposite of devaluation is called revaluation. Currency war, also known as competitive devaluations, is a condition in international affairs where countries seek to gain a trade advantage over other countries by causing the exchange rate of their currency to fall in relation to other currencies. One reason a country may devaluate its currency is to combat trade imbalances. Devaluation causes a country’s exports to become less expensive, making them more competitive in the global market.