I thought the value of currency was market based.
Everything in China is hocus-pocus and will eventually collapse. They even lie about their GDP and everything else.
Not in China.
And a central bank can set their currency price by making a market in gold or pegging to another currency.
The markets themselves are based on lies.
Value of a currency is market based in the long run, but in the short run it can be forced otherwise. Doing so will provide short term benefits, but eventually the disparity gets so acute that the system collapses. The point of a currency war is to make the other country’s economic system do the collapsing first.