Is manipulating exchange rates to affect the current account effective?

Many countries have been talking about increasing exports and reducing imports; by achieving such goal, a strategy of depreciating currencies is always brought onto the table. I doubt if such strategy is as effective as we imagine.

Firstly, the current floating exchange rate system is the most popular one around the world. Using monetary policies to affect the exchange rate is often effective but there are many other factors that will shift the exchange rates. Once there is too much noise in the Forex market, the attempt to manipulate the exchange rate is very highly to fail and cause some unwanted side effects. Secondly, pushing exports to grow and reducing imports will always add an appreciation pressure on the currency; therefore, even with a continuous policy that drags down the currency value, it is highly unlikely to create a dramatic currency depreciation. Thirdly, a stable and predictable economic environment is better for the society, the economy and the business activities. Having an aggressive monetary policy to intend to manipulate the exchange rates will add uncertainties to the economy. Fourthly, the countries with very cheap currencies do not have very good economic development or excellent current account, as these countries have very weak economies and some degree of social and economic chaos. Once the economy is growing healthily, its currency value will also increase inevitably, showing an increase in the confidence in the economy. This is a very positive effect that we should welcome. Fifthly, although improving in current account is likely to increase the GDP, a strong currency is possible to help to increase investment, which is also going to increase the GDP.
Finally, the currency value is only one factor to influence the current account, quality and productivity are another two important facts that will definitely influence the current account.

Therefore, I do not think that improving the current account by manipulating exchange rates is effective and will help our economy as much as we expect.