Competitive devaluations: SNB intervenes

In the March issue of Euromoney there is an article that examines the (mis)concept of competitive devaluations. As John Normand, head global FX strategy JPMorgan, explains: “Competitive devaluation is a term that had much more meaning in the middle to late 1990s, when many countries pegged their exchange rates. The central bank could make a deliberate decision to stop defending a certain level in order to compete more with their major trading partners. That’s a very active decision.”