Posted by

Barry Siskind

Community Manager

As if wars on terror, drugs, human rights and coming soon – fresh water – weren’t enough, we are now facing wars on currency.

In a nutshell a currency war starts when one country artificially suppresses the value of its currency which among other things maintains a strong export market for that country. The massive recent purchase by Japan of US currency will keep the lid on the Yen, at least in the short term. When more than one country attempts this strategy they effectively compete in a negative way to depreciate or maintain the value of its currency. It’s very easy to see how this can quickly spiral out of control creating havoc in the global financial world.

For an industry like ours whose growth is closely akin to the GNP and GDP of our host country, what kind of fallout can we expect? Is there anything we can do to mitigate the damage?

It’s worth a discussion.