Question

Why might a country want to intervene (manipulate) in the currency markets for its home currency? How could a government intervene? Are there any countries that are currently manipulating their currencies? Research the and provide some details.

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A country may intervene in the currency markets in order to stimulate it's economy. Some countries, like China, purposefully devalue its currency in order to make its exports cheaper than competing domestic products from its trading partners. The most visible method of Chinese devaluation is the Chinese governments ability to purchase American debt which boosts the U.S. dollar's value (which would be considerably lower if China didn't buy its debt bonds)....

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