Revaluation

“Revaluation” basically happens when we decide something's worth has changed over time, and adjust its value accordingly. Most often, we’ll see this with regard to foreign currency exchange rates and asset valuations. When the USD/MXN conversion rate changes from 1.0/19.55 to 1.0/19.07, that’s a revaluation. When our house is appraised and it’s now worth $365,000 instead of $355,000, that’s a revaluation.

Speaking of currency, the term “revaluation” can also mean that the actual value of a country’s currency has changed. Usually, we use “revaluation” when it’s been adjusted upwards, and “devaluation” when it’s been adjusted downward. For example, let’s say Mexico suddenly decides to revalue their currency so that one U.S. dollar is worth five pesos instead of 19-ish. This is a substantial change—or revaluation—that makes Mexican pesos much more valuable relative to the U.S. dollar.