ForexIntermediate

Currency Manipulation

Accusation that a government is deliberately pushing its currency's value, usually down, to gain a trade…
In plain English

Accusation that a government is deliberately pushing its currency's value, usually down, to gain a trade advantage.

Currency manipulation usually means a country keeping its currency artificially cheap so its exports are more competitive. The US Treasury publishes regular reports on major trading partners' currency practices.

The line between manipulation and normal policy is political. Cutting rates weakens a currency too, but that is rarely called manipulation. Repeated large one-way interventions are where the charge usually sticks.

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