Currency Wars & International Trade

This paper examines the contemporary international trade and currency system to determine whether the system is appropriate for the level of knowledge, development and maturity of countries today. International trade and currencies are a key mechanism by which governments manage the livelihoods, standard of living and well-being of national economies including the relationship between countries and their peoples. Therefore, understanding how the international trade and currency system works and not just taking it at face value is important in determining whether a fair trade and currency system can be established between nations. The paper goes on to discuss what changes or reforms can be made which will enhance how countries perceive trade and one another in the currency process, currencies being the mechanism by which countries measure the value and accessibility of goods and services they exchange. It consequently, introduces the role of an Electronic Clearing House (ECH) in the international trade and currency system through which central banks would be able to enhance the trade and currency relationships between governments in order to make them more equal, more effective and relevant to the level of knowledge and development countries have attained.