$BTC The devaluation of the dollar occurs when its purchasing power decreases against other foreign currencies. This can be due to several factors, such as expansive monetary policies, high levels of public debt, or rising inflation. When the dollar is devalued, imports become more expensive, which can affect consumers and increase the cost of living. However, U.S. exports may become more competitive in the international market. Devaluation can also boost domestic tourism and benefit exporting businesses. In the long term, a weak dollar can raise concerns about economic stability and confidence in the currency.