Report says global trade is still dominated by the export of goods that sold better after a slice in the exchange rateA 10% fall in the value of a nation’s currency can boost exports by an average 1.5% of GDP,according to a study by the International Monetary Fund that reveals the benefits of a slice in the exchange rate for foreign trade.
Heightening fears that the global economy is likely to suffer a unusual round of currency wars, the report said global trade was still dominated by the export of goods such as cars and fridges that sold better after a slice in the exchange rate made them cheaper. Related: China's currency devaluation could spark 'tidal wave of deflation' Continue reading...
Source: theguardian.com