The war continues

Many countries have started ‘competitive devaluation’ to recover from the crisis, introducing a global race to the currency devaluation bottom that could greatly harm the global recovery.

US Dollar vs Yuan

Especially countries with export-led economies acknowledge the benefits of weakening the value of their currencies compared to other currencies.

Although the US disapproves this action, the problem is mainly caused by the US that printed lots of dollars creating hot money that can be bought by those nations.

IMF fears that currency intervention can only lead to protectionism, putting an end to all international economic transactions.

Laurent Declercq

Source: http://www.bbc.co.uk/news/business-11484532