Economic and Financial Committee


Molly Li

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Committee: Economic and Financial Committee Country: Philippines Topic A: Competitive Currency Devaluation

Many nations has take currency devaluation as a measure to solve the economic problem. Currency devaluation improves the competitiveness of Philippines’ exports and boosts domestic industries. Also, it drops the unemployment rate and faster economic growth. However, it may lower productivity and reduce the overseas purchasing power of a Philippine's citizens.

Competitive currency devaluation is viewed as being harmful to the global economy. It may set off a round of currency wars that may have unforeseen adverse consequences. At the very least, competitive devaluation may lead to greater currency volatility and higher hedging costs for importers and exporters, which may impede international trade.

In 2015, August, Philippines Finance Minister Cesar Purisima said China's practice of devaluation unwarrant...

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