In order to improve its trade balance with China, the US, led by its mercurial president Donald Trump, has implicitly decided to allow its currency to weaken. While China is not one to sit out, a currency war likely seems to be on the cards, carrying far-reaching implications for the global economy, including Pakistan. Speaking during a CNBC-moderated panel at the WEF in Davos, Mnuchin said dollar weakness in the short-term was “not a concern of ours”. In case, Pakistan depreciates its currency to make it competitive, this will increase its debt burden. The financial conditions are reasonably accessible and the engines of global growth are the investment and the growth in international trade, said the MD, adding that international trade is growing at a faster rate than the global economic growth rate.

Source: The Express Tribune January 26, 2018 03:22 UTC