Economists warn that this opens the door to a damaging global currency war pitting everyone against everyone. Central banks use interest rate cuts to spur a sluggish economy, weakening a currency’s value in exchange for boosting exports, which then power economic growth. OPEN FOR COMMENTIf approved, the department could impose tariffs to offset the weaker exchange rate against the US dollar. The department is accepting comments from the public until Thursday and could implement the change any time after that. According to the proposal, the department said that it would defer to Treasury’s evaluation of whether a currency is undervalued, “unless we have good reason to believe otherwise.”

Source: Taipei Times June 23, 2019 15:56 UTC