After a week of collapsing asset prices, moves from central banks to weaken their country’s currencies have proved frustratingly short-lived, leaving analysts scratching their heads as to what policymakers can do next to intervene.
Normally when a country loosens monetary policy and cuts their interest rates, investors pull their money out in search of higher yields elsewhere. This pushes down the value of the currency — hopefully stimulating growth by helping exporters gain market share and making debt repayments cheaper.
[“source -cncb”]
