FACTBOX-Countries at risk of currency manipulator tag Reuters 12/16/2020
TAIPEI/HANOI, Dec 16 (Reuters) - A long-overdue U.S. Treasury report on the foreign exchange practices of U.S. trading partners could label several countries as currency manipulators or add them to a watchlist.
The designation, which can lead to sanctions, is based on three criteria: A $20 billion-plus trade surplus with the United States, currency intervention exceeding 2% of gross domestic product and a current account surplus exceeding 2% of GDP.
Experts say the following could be classified as foreign exchange manipulators or placed on a monitoring list:
SWITZERLAND Switzerland is already on the monitoring list and ran a trade surplus with the United States of $21.8 billion last year, according to the U.S. trade representative, and had a current account surplus about 11% of gross domestic product.
FACTBOX-U.S. Treasury tags Switzerland and Vietnam currency manipulators
(Adds details from U.S. Treasury announcement, Swiss reaction)
Dec 16 (Reuters) - The U.S. Treasury labeled Switzerland and Vietnam as currency manipulators on Wednesday and added three new names to a watch list of countries it says it suspects of taking measures to devalue their currencies against the dollar.
The designation, which can lead to sanctions, is based on three criteria: A $20 billion-plus trade surplus with the United States, currency intervention exceeding 2% of gross domestic product and a current account surplus exceeding 2% of GDP.
The Treasury also said its monitoring list of countries that meet some of the criteria for being labeled as currency manipulators has hit 10, with the additions of Taiwan, Thailand and India. Others on the list include China, Japan, Korea, Germany, Italy, Singapore and Malaysia.
The Straits Times
Video of US labels Switzerland, Vietnam currency cheats
VIDEO: REUTERS
PublishedDec 17, 2020, 12:12 am SGT
https://str.sg/JaLF
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