A situation in which a nation with a pegged exchange-rate regime changes the pegged value of its currency so that it takes a smaller number of domestic currency units to purchase one unit of the foreign currency.

For example, suppose that the government of country X has set 20 units of its currency equal to one U.S. dollar. To revalue, the government could change the rate to 10 units per dollar. This would result in that currency being twice as expensive relative to the dollar.