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The weapons and tactics of a currency war | Business | Deutsche Welle | 14.10.2010

Conflict is growing in the trade relationship between the United States and China, with the yuan being held at an artificially low value to secure a competitive advantage for Chinese exports.

Goods produced in a country such as China with an inexpensive currency effectively cost less when sold to consumers in a country with a higher value currency. Those goods then become desirable, helping to spur the economy in the producing country.

But China is by no means alone in engaging in this type of policy. Many countries seek to make their exports more attractive by keeping their currency weak. And there are plenty of strategies by which to do so.

by In Wales (inwales aaat eurotrib.com) on Thu Oct 14th, 2010 at 11:40:01 AM EST
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