A post-Lehman global currency war has kicked off since 2010 and has intensified this year.
Competitive devaluation, as it is also known, involves central banks – today most prominently the Bank of Japan (yen/JPY), People's Bank of China (renminbi/RMB), Central bank of Brazil (real/BRL) and Swiss National Bank (Swiss franc/SFr) – battling it out to boost exports or bring down exchange rates to perceived fundamental value. But, with huge monetary stimulus in Europe, Japan and the US - countries that face weak domestic demand - global trade tensions have emerged at the forefront of the policymakers' concern from Washington to São Paulo.
Policy tools used for currency manipulation or intervention include direct government intervention, the imposition of capital controls and, indirectly, quantitative easing.
Recent Euromoney currency war coverage
FX: China ponders implications for renminbi of Trump victory
Don’t believe the currency-war hype on Japan
Japan could realize its goal of a weaker yen without the need for FX intervention, say analysts.
TPP add-on aims to address Congress concerns over FX manipulation
The Trans-Pacific Partnership (TPP) has been criticised in the US for ignoring the question of currency manipulation. The US Treasury hoped it could appease those concerns with a joint declaration by the countries involved, pledging to avoid such practices – but critics look far from convinced.
Stronger RMB, stronger China
As global currency wars intensify, calls grow louder for China to weaken the renminbi to jump-start its sputtering export machine.
Inside investment: Hobbesian option
A war of all against all in currency markets will not be pretty. For some countries it may also be too little, too late. The International Monetary Fund has failed in its role as the arbiter of currency values.
Dollar, as reserve currency, is a virtue, not a trap: a response to Eswar Prasad
Forget the doom over currency wars – the dollar-led monetary system boosts global stability, while China’s fixed exchange-rate regime poses risks, argues the IIF’s Charles Collyns, a former US Treasury official, as debate rages over the role of the dollar in the emerging world, in particular.
Deflation fears to renew currency wars as ECB poised for QE, say analysts
With global economic growth still stuttering, currency depreciation has become a zero-sum game for central banks, and recent developments in some key currencies have shown that fears of an inflation undershoot or outright deflation will remain an important driver for their currency policies.
Australia steps up the currency-war rhetoric
Australia has stepped up its assault on a perceived overvaluation of its currency, but might well have inadvertently set up a soft floor in its currency.
Czech koruna among the most vulnerable to a dollar rebound
Intervention threat for Australian dollar
China sows seeds for next global downturn
Dark clouds hover over emerging markets as US Federal Reserve spoils rates party
Inside investment: Central banks, credit bubbles – where it stops, nobody knows
Yen weakness only halfway through
Ukraine: hostage to Cypriot fortune
Sterling vulnerable to fresh slide; caution required over currency war reboot
Banks and hedge funds hope to profit from currency wars
Bird's-eye view of emerging markets in the global currency wars
Italian election slams FX market back into crisis mode; currency wars take a back seat
Yen slide built on hot air, but Japan’s reflation could have “once in a generation” impact
EM policymakers to sit out the currency war as EM FX correlation hits decade low
Sterling: turning Japanese
Shut up about currency wars already
Yen exchange-rate misalignments overstated; renminbi a better focus of currency hostilities
G7 memo to Japan: don’t mention the currency war
Mario Draghi: the grand old Duke of Frankfurt
Further yen weakness needs action, not words
Further euro strength could prompt ECB rate cut
The joy of forex – introducing the currency sutra
Sterling safe from currency war
Europhoria takes single currency to new heights
Currency wars: a handy guide
Currency wars – expect words not action
Do not expect the eurozone to wage currency war
Lost in translation: yen weakness enters new phase
China hard landing could still blow up world - Société Générale
Don't bet against the return of FX volatility in 2013
Swiss National Bank notches up a victory, but Swiss currency war continues
Foreign exchange: Toxic macro/monetary mix spells danger for euro
Don't bet against the return of FX volatility in 2013
ESM bond purchase is no back door yen intervention
The renminbi and cross-border trade: sightings of Bigfoot
Currency managers go exotic in search of profits
Brazil economy: is the party over?
Beyond inflation – Brazilian style
Special focus: The future of the RMB
Outlook: Cautious optimism prevails in harsh macro-risk environment
Against the tide: A year of economic porridge
Four things that could upset the consensus in 2013
Bearish take on the besieged Bank of Japan
UBS warns on euro-swiss franc floor
Buying dollar-yen: This time it could be different
Be smart to find returns in foreign exchange
HKD intervention: it could get ugly
Fed defends quantitative easing amid ‘currency war’ fallout
Phoney currency wars – this time it's different
Japanese stimulus – a likely dud
Australia not the new Switzerland; RBA FX intervention impotent
Switzerland hopes for a happy anniversary; talk of a rise in EURCHF floor
Monetary suicide and the emerging markets-shaped noose
What unites gun-toting Texans and Beijing in their sympathy towards a gold standard
Brazil policy U-turn materially improves BRL outlook; currency war truce called
Mantega talks of war as Dutch disease diagnosed
Mantega needs to move war to home soil
Central banks bring tail risk challenge to FX markets
The currency ceasefire
US ‘uses China as scapegoat’ with currency bill
Out of options: Even unprecedented central bank intervention can’t save the global economy now
FX derivatives fight history and a currency war
Volumes and volatility benefit in currency wars
Fighting weapons of mass liquidity
Brazil raises tax to stem inflows
Central banks: Switzerland ups the ante
Devaluation: Ready, steady, devalue
Competitive devaluations: SNB intervenes