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Vietnam Dong Denied As Global Currency Manipulator

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U.S. Will Refrain From Labeling Vietnam a Currency Manipulator
By,  Jenny Leonard  &  Saleha Mohsin
Photographer,  Brent Lewin of Bloomberg
May 24, 2019  @ 2:10 pm EDT


⏩   Vietnamese officials provided data, visited Mnuchin Thursday
⏩   President Trump to vet more trading partners for currency manipulation
⏩   Considerations for Global currency manipulators rises to 20 Countries as of 2019
⏩   Negotiations Over Vietnamese Dong Valuation As Global Currency




Vietnam Dong Global Currency Manipulator



Vietnam Dong Currency Stays In The Spotlight As A Global Currency Manipulator!

The U.S. is refraining from labeling Vietnam a currency manipulator based on new data the country provided the Treasury Department, according to a person familiar with the matter.  (Until the next hearing when Vietnam will be further considered as a key player)

The determination is a win for Vietnam, which had been at risk of the designation (as a global currency manipulator) amid plans by President Donald Trump’s administration to lower the threshold for labeling Vietnam's trading partners as (global currency) manipulators.

In recent weeks, Vietnam provided additional data aimed at showing the U.S. Treasury that it wasn’t (intentionally) holding down the value of the Dong.  Vietnam also sent a top envoy to meet with U.S. Secretary, Steven Mnuchin on Thursday.  However, It’s unclear what data the Vietnamese gave to the U.S.  Following the meeting, Mnuchin tweeted a photo of himself alongside Vietnamese Deputy Prime Minister, Pham Binh Minh, saying, they talked about “(Economic and Trade Relations).”

The U.S. Treasury issues a report twice annually on foreign currencies.  In the latest report, the number of countries under scrutiny for possible manipulation will rise to about 20 from (the previous number of only) 12, after Treasury altered one of the three criteria it uses to test for manipulation. Making it easier for these countries to become global currency manipulators.

Previously, one of Treasury’s triggers to examine for currency manipulation was a current account surplus -- the difference between the amount a country exports and imports -- of 3% of gross domestic product.  For the current report, they lowered the threshold to only 2%, opening the doors for many.

The report was officially due to Congress in April.  Mnuchin initially expected to meet that deadline and submitted the completed report to the White House for sign-off in early April.  But the report has since been delayed and a date for its release hasn’t been announced.

A Treasury spokesmen did not reply to a request for comment.

Currency policy has emerged as Trump’s latest tool to escalate a push to rewrite global trading rules that he says have hurt American businesses and consumers.  He (Trump) has made foreign-exchange policy a key piece of trade deals with Mexico, Canada and South Korea, and it’s expected to be part of an agreement with China, should one be reached.  (Lending to the idea that China could possibly hold a better relationship with the U.S., strengthening trade.)

The administration on Thursday ramped up its focus on foreign exchange, proposing tariffs on goods from countries found to have undervalued currencies.  The move would let U.S.-based companies seek anti-subsidy tariffs on products from countries found by the U.S. Treasury Department to be engaging in competitive devaluation of their currencies.  Currently no country in the world meets that criteria.   (Which means we won't be seeing any foreign countries LOSE value in their currencies in the near future!)



Source Information:   Bloomberg News
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DISCLAIMER:
The views and opinions expressed by Bloomberg News and their authors are those of Bloomberg News and the authors, and do not necessarily reflect the official policy, position, belief nor opinion of Cheapest Dinar / Banknote Pros and or our staff.  Any content provided by Bloomberg News or their authors are of their opinion, and are not intended to affect the decision making ability, nor the opinions or beliefs of our members in any capacity, including but not limited to their decisions and or judgement involving their purchasing habits on our website.  This article provided by Bloomberg News is meant only as informational subject matter, for entertainment purposes only, and is not intended to be construed as investment advice.





China Forced To Revalue Their Currency




U.S. Proposes Tariffs on Nations With UNDER-valued Currencies!
By,  Shawn Donnan  &  Jenny Leonard
Photographer,  Brent Lewin of Bloomberg
May 23, 2019  @ 7:10 pm EDT


⏩   American companies may be able to seek anti-subsidy tariffs
⏩   Foreign Countries could be forced to update the value of their currency
⏩   Chinese Yuan weakened against the U.S. Dollar, leaving room for growth
⏩   Possibility for MORE tariffs against ANY country with under-valued currency




Chinese Yuan To Revalue Amid Tariff War



Countries With Under-Valued Currencies Could Experience Steep Tariffs If They Don't Update Their Currency Value!

The Trump administration is proposing tariffs on goods from countries found to have undervalued currencies, in a move that would further escalate its assault on global trading rules.

The proposal, laid out in a Federal Register notice released on Thursday, would let U.S.-based companies seek anti-subsidy tariffs on products from countries found by the U.S. Treasury Department, to be engaging in competitive devaluation (intentional) of their currencies.  Currently no country in the world meets that criteria.  But it also sets a broader standard by focusing on the “undervaluation” of currencies.

President Donald Trump has long threatened to label China a currency manipulator and his administration has been examining how to take a more aggressive approach to what is now a largely technical exercise by Treasury to determine whether any currency manipulation has taken place.

“This change puts foreign exporters on notice that the Department of Commerce can countervail currency subsidies that harm U.S. industries,” Commerce Secretary Wilbur Ross said in a statement.  “Foreign nations would no longer be able to use currency policies to the disadvantage of American workers and businesses.”

The notice released by the Commerce Department, which administers the quasi-judicial process that determines the imposition of what are known as “countervailing duties,”  says it would defer to Treasury in determining whether any currency was deemed undervalued.  It also specifically says the move is not aimed at any central bank action that results in currency swings.

In determining whether there has been government action on the exchange rate that undervalues the currency, we do not intend in the normal course to include monetary and related credit policy of an independent central bank or monetary authority,”  Commerce said.

The move would be a major departure from past U.S. Tariff policy, according to Scott Lincicome, an international trade lawyer and adjunct scholar at the Cato Institute.  Over the past decade American companies have tried multiple times to get the Commerce Department to count a weak currency as a subsidy.

It’s opening the door to additional tariffs on any goods from any country found to have an undervalued currency,"   Lincicome said.


Resurgent Hawks
According to people familiar with the administration’s internal deliberations, the move to include the new currency tool has been pushed by Ross and White House trade adviser Peter Navarro since the early days of the Trump presidency.

The issue had been lying dormant for awhile before it rose to the top of the Trump team’s trade discussion again in recent weeks, a person familiar with the matter said.  The inter-agency debate leading to the issuing of the proposal was heated, the person said.  That it is now advancing is a sign of the resurgent power of trade hawks in the administration as the White House ramps up pressure on China for a trade agreement.

This month, all sides were close to a deal when the talks hit an impasse, prompting Trump to increase tariffs on $200 billion of Chinese goods and threaten to slap duties on another $300 billion, as well as add Chinese telecom giant, Huawei Technologies Co. to a blacklist.  (Google, Android and other U.S. Tech companies move to blacklist Huawei Tech, makers of High-Tech - Fair priced cellphones,in an attempt to control the U.S. market and thus controlling the prices of such goods, forcing the U.S. consumers to continue paying inflated prices for overly priced mobile devices).  Democratic lawmakers have also pushed for such changes to trade law to address currency concerns for years but never garnered enough support to pass legislation.

In 2010 testimony to a congressional commission on dealing with China, Robert Lighthizer, now the U.S. trade representative, pushed for the same.  “We should respond to China’s currency manipulation," he said.  The U.S. government should treat currency manipulation as a subsidy.


Trade Deals
The Currency policy has been a central tenet of trade deals that Trump has struck with Mexico, Canada and South Korea, and it’s expected to be part of an agreement with China, should one be reached.

The Chinese Yuan, CNY, has weakened by about 8% against the U.S. Dollar over the past year, as the U.S.-China trade was has taken off, offering Chinese exporters a cushion against Trump’s tariffs.  The drop in value of the Chinese Yuan leaves room for a very reasonable expectancy of 8% rebound in value as the smoke begins to clear from the tariff war.




Source Information:   Bloomberg News
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If the above button doesn't work, copy & paste the link below:
https://www.bloomberg.com/news/articles/2019-05-24/u-s-will-refrain-from-labeling-vietnam-a-currency-manipulator




DISCLAIMER:
The views and opinions expressed by Bloomberg News and their authors are those of Bloomberg News and the authors, and do not necessarily reflect the official policy, position, belief nor opinion of Cheapest Dinar / Banknote Pros and or our staff.  Any content provided by Bloomberg News or their authors are of their opinion, and are not intended to affect the decision making ability, nor the opinions or beliefs of our members in any capacity, including but not limited to their decisions and or judgement involving their purchasing habits on our website.  This article provided by Bloomberg News is meant only as informational subject matter, for entertainment purposes only, and is not intended to be construed as investment advice.