South Korea avoids being labeled currency manipulator by U.S.

South Korea avoids being labeled currency manipulator by U.S.


Korea is no longer a “currency manipulator”
in the eyes of the U.S. Treasury Department. However Seoul, along with a handful of other
countries… is still on Washington’s monitoring list. Kim Mok-yeon has the details from the currency
report. In its report released on Tuesday, the U.S.
Treasury said no major trading partner is manipulating its currency to gain an advantage
in trade this year. The Treasury said it did not alter its three
major thresholds for identifying currency manipulation put in place last year by the
Obama administration. The three being: a bilateral trade surplus
with the United States of 20 billion dollars or more, a global current account surplus
of at least three percent of GDP, and persistent foreign exchange purchases equal to two percent
of GDP over twelve months. If a country meets all three of these criteria,
it would be labeled a manipulating country, but if it only meets two of these conditions,
they go on the monitoring list. South Korea was on the U.S. Treasury’s monitoring
list in April, mostly for posting a significant bilateral trade surplus with the United States
and other factors. As well as South Korea,… China, Japan, Germany and Switzerland remain
on the latest list, but Taiwan was removed. Among those countries, much attention was
paid to China as President Trump repeatedly pledged during last year’s presidential campaign
that he would include Beijing on the list of manipulators. The Treasury said it’s concerned about China’s
unusually large, bilateral trade surplus with the U.S. and its policies that limit market
access for imported goods and services. Analysts say they expect President Trump not
to take a hard line on China regarding the currency issue as Washington seeks to cooperate
with Beijing to solve the North Korea nuclear issue. Kim Mok-yeon, Arirang News.

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