Devaluation is a monetary policy tool used by central banks to make their currency less valuable relative to other currencies. This can be done either by lowering the official exchange rate or through other measures such as changing reserve requirements, interest rates, and capital controls. The goal of devaluation is usually to boost exports, increase inflation, and stimulate economic growth. However, it can also lead to higher prices for imports, increased debt burdens, and reduced purchasing power for consumers. Devaluation is often seen as a sign of economic weakness or instability, and can cause uncertainty in financial markets.