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China specifically also directly sets the rate bands that are allowed. They’ve specifically weakened their currency to juice their economy (and they are loweri
by kasey_junk 4y ago
China specifically also directly sets the rate bands that are allowed.
They’ve specifically weakened their currency to juice their economy (and they are lowering rates).
- rossdavidh 4y agoI think many of the countries that are "suffering" from currency depreciation, are actually doing covert currency devaluation (looking at you, Turkey). If you announce "we're devaluing our currency", it reminds people of the 1930's "beggar thy neighbor" policy of increasing your own exports' competitiveness at the expense of everyone else. If you suffer from your currency dropping in value, it is mathematically the same thing, but it sounds like something that's being done to you, rather than something you are doing to everyone else.