Currency Wars: What is The Main Purpose...

There is a safe haven currency called US dollar, Japanese Yen and Pound Sterling, and now there is a words Currency Wars, so what the meaning of Currency Wars, A currency war refers to a situation where a number of nations seek to deliberately depreciate the value of their domestic currencies in order to stimulate their economies. Although currency depreciation or devaluation is a common occurrence in the foreign exchange market, the hallmark of a currency war is the significant number of nations that may be simultaneously engaged in attempts to devalue their currency at the same time. of course there is a main purpose, every forex traders knew it

After sub prime mortgage crisis, and now eurozone debt crisis, currency wars is such a common words to bargain the local currency against major currency, A currency war is also known by the less threatening term "competitive devaluation." In the current era of floating exchange rates, where currency values are determined by market forces, currency depreciation is usually engineered by a nation's central bank through economic policies that may force the currency lower, such as reducing interest rates or increasingly, "quantitative easing (QE)." 

Central bank policy introduces more complexities than the currency wars of decades ago, when fixed exchange rates were more prevalent and a nation could devalue its currency by the simple expedient of lowering the "peg" to which its currency was fixed. 

Stronger currency made disadvantage for exporter nation, It may seem counter-intuitive, but a strong currency is not necessarily in a nation's best interests. A weak domestic currency makes a nation's exports more competitive in global markets, and simultaneously makes imports more expensive. Higher export volumes spur economic growth and more social economic positive impact, while pricey imports also have a similar effect because consumers opt for local alternatives to imported products. not good for local products sales, This improvement in the terms of trade generally translates into a lower current account deficit (or a greater current account surplus), higher employment, and faster GDP growth. The stimulative monetary policies that usually result in a weak currency also have a positive impact on the nation's capital and housing markets, which in turn boosts domestic consumption through the wealth effect. 

source: investopedia