Currency Manipulation

Currency manipulation occurs when a country artificially influences the value of its currency to gain an unfair advantage in international trade. By devaluing its currency, the country can make its exports cheaper and more attractive to foreign buyers, boosting its economy. Meanwhile, imports become more expensive, which can hurt trading partners. This practice can lead to trade imbalances and tension between countries, as it undermines fair competition. Nations may employ various strategies, such as buying or selling their own currency or adjusting interest rates, to achieve their desired currency value.