Forex could lead to trade war

The so-called currency wars as countries move to cap the strength of their domestic money on the foreign exchange market to remain competitive could lead to trade wars, news agency I-Net Bridge quoted Finance Minister Pravin Gordhan as says.

“The danger that we face as the world is that in an effort to keep our own countries going, where each country tries to become competitive on the basis of the so-called competitive currencies, that will result in a currency war,” Gordhan told a consumer council conference.

“But this could result in a trade war where countries will put up barriers.”