According to Yonhap News Agency’s report on April 17, in the “International Economic and Exchange Rate Policy Report” released for the first time after the Trump administration took office, the United States did not identify any major trader, including South Korea and China. partners “manipulated exchange rates”, but still included six economies, including South Korea, Japan, China, Switzerland, Germany, and Taiwan, on its exchange rate policy watch list. The report stated that it would pay close attention to South Korea’s exchange rate and urged South Korea to make its exchange rate more flexible. It emphasized that South Korea sold a net foreign exchange of US$6.6 billion last year, accounting for 0.5% of its GDP.
It is reported that the U.S. Treasury Department sets up an exchange rate policy monitoring list twice a year, with three identification criteria: the trade surplus with the United States exceeds 20 billion U.S. dollars; the economy’s current account surplus accounts for more than 3% of the GDP; Economies continue to intervene unilaterally in the exchange rate market. Once the above three conditions are met at the same time, the economy will be labeled as “exchange rate manipulation”.
Park Jung-woo, a researcher at Korea Investment and Securities, analyzed that this time South Korea and others were not found to be manipulating exchange rates, which will slow down the recent appreciation pressure of the Korean won and the RMB. It is expected that the chances of Asian currencies depreciating will increase relatively, and the Korean won will be more likely to depreciate in the next three months. The exchange rate against the US dollar may rise to 1,200 won/USD. The United States adds South Korea and others to the exchange rate watch list
AAA Functional Fabrics Network DBGRTHRTH
