Currency wars appear to be making a comeback – Reuters Breaking Views

Currency wars seem to be making a comeback, and the world would not be better off. The international community needs to recommit itself to multilateralism and refrain from protectionist action, Mark Sobel, a former senior US Treasury official, and adviser to the London-based OMFIF economy policy think tank noted in his Reuters Breaking Views article on global currency policies. 

Key quotes

The US trade representatives' office is launching an investigation into Vietnam for currency undervaluation, which could ultimately result in tariffs.

Eurozone officials are expressing concerns about the deflationary impact of the recent euro appreciation. 

Many Asian countries have long sought to perpetuate export-led growth models, and intervention to limit currency appreciation may be on the rise.

The Trump administration emphasizes bilateral balances, which economists disregard, rather than overall accounts. And it is now deploying trade sanctions to address currency issues.