Control currency transcript easily

Aug 6th, 2022
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How to control currency transcript

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Its been one of Trumps favorite accusations toward other nations. Currency manipulation. A currency manipulator. China is a currency manipulator. But how can banknotes like these, be manipulated? Lets break it down. One example of currency manipulation is what a country might do when it wants to minimize the effects of having a strong currency. Lets say for example, that one U.S. dollar is equal to ten dollars in the Republic of Monopoly and with ten Monopoly dollars, I can buy one cup of coffee from the United States. Now imagine that gradually inside the Republic of Monopoly, the economy starts doing very well and is extremely stable. The currency naturally could rise against all other currencies. So now that one U.S. dollar only earns you eight Monopoly dollars instead of ten. For me to buy that same cup of coffee from the United States, I only need to pay eight Monopoly dollars. So, its cheaper for me. So, this currency has become more valuable. My citizens have more spending

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These controls allow countries to better manage their economies by controlling the inflow and outflow of currency, which may otherwise create exchange rate volatility. Countries with weak and/or developing economies generally use foreign exchange controls to limit speculation against their currencies.
To reduce the value of a currency there are a few policies the government could adopt. Looser monetary policy cutting interest rates. Looser fiscal policy cutting tax and increasing government spending. Selling reserves of currency on the foreign exchange market and buying rival currencies.
The British pound is both the oldest and one of the most traded currencies​ in the world. It is currently the fourth most traded currency in the foreign exchange market, after the US dollar (USD), euro (EUR) and Japanese yen (JPY).
U.S. Treasury finds no currency manipulation by major trading partners | Reuters.
Increasing terms of trade shows greater demand for the countrys exports. This, in turn, results in rising revenues from exports, which provides increased demand for the countrys currency (and an increase in the currencys value).
The currency wars are getting hot and its looking increasingly likely that the world is going to start moving away from the US dollar as a reserve currency gold or bitcoin are the front runners to replace it.

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