U.S. keeps S. Korea on currency manipulation monitoring list


The U.S. has just released a report on currencies,
and South Korea is on the watch list as a
possible currency manipulator,… which means
the U.S. is going to keep a close eye on South
Korea’s currency practices and macroeconomic
policies.
Our Ko Roon-hee has this report.
The Trump administration has decided to keep
South Korea on its monitoring list for currency
manipulation.
According to the Treasury Department’s report
released on Tuesday, nine countries, including
China, are on the monitoring list.
The previous report had six nations on the
watch list.
The report aims to identify potentially unfair
currency practices… which could harm American
workers and businesses.
Countries that meet two of the three criteria
are placed on the watch list.
The revised criteria include… a trade surplus
of at least 20-billion U.S. dollars with the
U.S., a current account surplus that is at
least 2-percent of GDP, and persistent intervention
in foreign exchange markets.
Although Korea met only one of the criteria
this time, news reports say the country was
still on the list…because Seoul met two
of the three criteria last October.
Generally, the U.S. needs to see improvements
for at least a year before it removes countries
from the watch list.
The Treasury Department welcomed Korea’s public
report in March on its foreign exchange intervention.
The report emphasized it would remove South
Korea from the watch list if conditions remain
the same at the time of its next report.
Washington has not designated a major trade
country a currency manipulator since 1994.
If a country is labeled as a currency manipulator…,
this could lead to trade sanctions imposed
by the U.S.
The Trump administration’s decision not to
label China a currency manipulator this time…
has prevented trade tensions from escalating.
However, the report says it will carefully
monitor developments surrounding the exchange
rate issue… saying that the Renminbi depreciated
by 3-point-8 percent against the dollar during
the second half of 2018.
Ko Roon-hee, Arirang News.

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