Chat with us, powered by LiveChat

Mnuchin May Push Back Currency Report Until After Elections

Fed Billions
Print Friendly, PDF & Email

EDITOR NOTE: Within the White House halls, there’s a report floating around that analyzes in detail currency manipulation activities among our largest trading partners. The report, written under Mnuchin’s leadership, was slated for publication earlier in the year, until the pandemic response became top priority. It’s unlikely the report will be released until after the election. When it does, it’ll likely roil the markets a bit, as it may signal a shift in trade policies, especially as it pertains to China.

(Bloomberg) -- U.S. Treasury Secretary Steven Mnuchin is unlikely to release a much-watched report on international currency manipulation that was due in April until after presidential elections on Nov. 3, according to people familiar with the matter.

The semi-annual report to Congress has been largely written and ready for release since the spring. But Mnuchin’s focus on combating the economic collapse precipitated by the coronavirus pandemic was, at first, the reason it was delayed, the people said.

The Treasury has been prepared to issue its report since about July, the people said, but decided not to for reasons that remain unclear. The document provides assessments on whether China or other major trade partners are artificially adjusting the values of their currencies.

The second report of the year was due this month. A Treasury Department spokesperson declined to comment.

Switzerland and Vietnam are currently seen at risk to be designated as currency manipulators. Swiss central bank officials in the first half of this year ramped up interventions to curb a strong franc, which is seen as a haven currency. Meanwhile, the U.S. Commerce Department launched a Vietnam currency probe on allegations that the nation is manipulating the dong to hurt American businesses.

Under the Trump administration, the Treasury Department’s routine, technical currency policy review has become a political cudgel in trade wars. Last year, President Donald Trump asked Mnuchin to abruptly designate China as a currency manipulator, only to remove that tag five months later when the two nations signed a trade deal.

The Treasury Department releases a review of nine major trade partners to assess bilateral trade balances and other actions to judge whether they are manipulating their currencies. A designation comes with no immediate penalties but can rattle financial markets.

Originally posted on BNN Bloomberg

Bank Failure Scenario Kit - sm2



  • This field is for validation purposes and should be left unchanged.

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

Precious Metals and Currency Data Powered by nFusion Solutions