The competitive devaluation of the yen began in earnest when Shinzo Abe was elected prime minister at the end of December 2012; he had campaigned on a promise to revitalize the Japanese economy, in part by devaluing the currency.
Barry Eichengreen, published a report in January joining the conversation about whether bond buying and other expansionary monetary tools are “beggar-thy-neighbor” if they’re designed with the intention of stimulating domestic demand – even if currency devaluation is a by-product (which it is).
Currency wars are becoming more belligerent. Countries that just two months ago said they would not engage in currency devaluation, are now doing it out of domestic economic and political necessity.
After determining that an outside solution would be necessary, and then undergoing a rigorous selection process, Hubbell selected FiREapps, designed specifically for treasury organizations seeking to establish an institutionalized FX risk management program for the first time.
Foreign multinationals with cash trapped in Venezuela know that their funds are worth less – because of the devaluation and inflation – but how much? Venezuela’s controlled currency, the bolivar, officially trades at 6.3 to the U.S. dollar.