A currency war, also known as a competitive devaluation, is a situation in which countries intentionally devalue their own currencies in order to make their exports more competitive on the global market. This can be achieved through various means, such as manipulating exchange rates or implementing monetary policies that lead to lower interest rates and a weaker currency. Currency wars can lead to increased tensions between countries and can potentially result in a negative impact on the global economy. In extreme cases, currency wars have even been linked to trade wars and military conflicts. It is important for countries to approach currency manipulation with caution and to consider the potential consequences of their actions on the global stage.