Currency manipulation and trade.
Often you may hear of nations trying to lower or higher their currency so it may potentially benefit their international trading. For example a nation may cause their currency to depreciate so people may buy more of a good they are exporting, is that right or wrong? Or is it even ethical. And how is it allowed and regulated by the World Trade Organization (WTO) and International Monetary Funt (IMF).
The question in all of this is to both parties come out better off, since the trade does occur and one gets the good and the other the money. And the answer is yes, but ultimately there are other countries involved that may loose out cause of this fiddling with financing. After all isn't it possible for all countries to manipulating thier currency power? For example a number of countries in Asia have been known to do that, even though they claim it is for national reason and not solely for trade other countries that are affected by this tend to disagree.
The IMF has a role and jurisdiction for exchange rates globally and the WTO regulates trade and inter realtions between countries, so the most logical thing here is for them to come together and make sure there are ethics here that if ever there is a depreciation or appriciation in currency it may be for valid reasons with no malice intend.
For instance the Chinese Yuan keeps appriciating to the dollar, but always stays constant with the Euro. Is it by some coincidence that The US is debt trillions to China so having an appriciated currency will benefit them when getting paid, even more so leave the US worse by far cause they are paying a larger percentage debt. So looking at the fact that the US deficit keeps increasing to China, China has higher exports, and also US cant export as much to China certainly does highlight the fact that the playing field isn't level. Some sort intervention is warranted and if not many other countries may hop onto the bandwagon and leave the global markets in turmoil.
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