Remember Brazil. Its finance minister was the one who started actively using the words currency wars. Brazil was upset about the appreciation of the real and the implications for trade.
Well now the real is again appreciating because the central bank needs to stem the rise in inflation which is above 5.5% versus a target of 4.5%. To do that, it will have to raise interest rates and cut money growth. The implication of this policy will be a stronger real. This has nothing to do with currency wars but with policies that need to be implemented on the domestic front. The fall-out will be a currency appreciation if they are effective.
The policy wars are often on the domestic front but the impact is in the price of currencies.
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