Compliance officers, consider youselves caught in the crossfire of the Currency Wars.
Those battles, of course, are being fought by finance ministers and central bankers around the world, as they all scramble to ensure that their own nation’s currency is weak enough to inflate demand for its exports. We’ve seen China keep the yuan at an artificially low exchange rate, Japan intervene in world markets to devalue the yen, and the U.S. Federal Reserve vow to keep interest rates essentially at zero essentially forever. Finance ministers from the G-20 met this weekend in Seoul and promised not to stumble into a currency war, but that’s bogus—nations everywhere are falling all over themselves to make their exports as attractive to world markets as possible, and that’s not to change any time soon.
