Finance & Fury Podcast

Beggar thy neighbour – How devaluation of currency can make or break economic growth domestically, or for trading partners

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Sinopsis

Welcome to Finance and Fury, the Say What Wednesday edition  Today's question comes from Jessica. Jessica – Hey Louis, You mentioned something about a Yuan devaluation in the Tech Share episode. I’m just wondering what this is and why a country would do this? Thanks Jessica – Does sound weird – a country choosing Devaluation - an official lowering of the value of a country's currency within a fixed exchange-rate system China's monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket (USD) – Beggar thy neighbour policy Exchange Rates – Fixed v Floating Floating exchange rates system — when exchange rates are determined by market forces and not by government or central bank policy actions – what we are used to in Aud, Usd, Eur – while note controlled influenced by MP The decrease in a currency's value relative to other major currency benchmarks is called depreciation increase in the currency’s value it is called appreciati