Insight to All Things Currency and Treasury Management

Why Do Countries Engage in Currency Warfare?

Most of the media attention focused on the currency war recently has been on how dangerous it is. But that begs the question: if currency war is so bad, and it creates a competitive devaluation race to the bottom, why do countries engage in it? Currency wars are politically motivated, and politicians often find strong incentives to engage in competitive devaluation. Here’s why.

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