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Q just what are these "currency war" all about?

Has country are accused of manipulating their currencies to make imports of loved ones and household products cheaper in order to create jobs. Brazil was initially going to attack last month, which implies a United States, Europe and the Japan are deliberately devalue.The United States then turned on China, claiming the giant Asia was not leaving the yuan rise hit librement.Chine, saying: the United States devalues by surprise.

Q So how they are doing it?

It is easier to see in China. Asian giant yuan to a basket of currencies exchange rate instead of markets to set the exchange rate. It allows the yuan to appreciate slowly – but not fast enough for the United States. China also uses controls capital, by limiting the amount of foreign capital in the country.By limiting the request, the currency is maintained artificially low.The Japanese Government last month intervened by selling Yen to buy trends $ $ - request handling and supply.Europe, the United States and the United Kingdom slashed interest rates to nearly from scratch and have been "printing money" when reducing the return on assets, asked chuté.Et by increasing the amount of money in circulation, supply augmenté.Pris set, the effect is to reduce the currency values.

Q Work devaluation?

Has by depreciation, troubled countries which export their problems elsewhere — largely développement.Si world all countries devalue all then it started little effect .a times, can afford to leave. ""Printing money" can have an inflationary distinct.être effect, it can push a depression dreaded United States however, as the war turns into policy, the risk of damaging the barriers to trade rige rises.

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